Do it! review 20-6 gator corporation manufactures several types of accessories. for the year, the gloves and mittens line had sales of $486,000, variable expenses of $362,000, and fixed expenses of $146,000. therefore, the gloves and mittens line had a net loss of $22,000. if gator eliminates the line, $44,000 of fixed costs will remain. prepare an analysis showing whether the company should eliminate the gloves and mittens line. (enter negative amounts using either a negative sign preceding the number e. g. -45 or parentheses e. g. ( continue eliminate net income increase (decrease) sales $ $ $ variable costs contribution margin fixed costs net income / (loss) $ $ $ the analysis indicates that gator should the gloves and mittens line.

On january 1, 2017, fisher corporation purchased 40 percent (90,000 shares) of the common stock of bowden, inc. for $980,000 in cash and began to use the equity method for the investment. the price paid represented a $48,000 payment in excess of the book value of fisher's share of bowden's underlying net assets. fisher was willing to make this extra payment because of a recently developed patent held by bowden with a 15-year remaining life. all other assets were considered appropriately valued on bowden's books. bowden declares and pays a $90,000 cash dividend to its stockholders each year on september 15. bowden reported net income of $400,000 in 2017 and $348,000 in 2018. each income figure was earned evenly throughout its respective year. on july 1, 2018, fisher sold 10 percent (22,500 shares) of bowden's outstanding shares for $338,000 in cash. although it sold this interest, fisher maintained the ability to significantly influence bowden's decision-making process. prepare the journal entries for fisher for the years of 2017 and 2018. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field. do not round intermediate calculations. round your final answers to the nearest whole dollar.)