On january 1, 2013, pride co. purchased 90 percent of the outstanding voting shares of star inc. for $540,000 cash. the acquisition-date fair value of the noncontrolling interest was $60,000. at january 1, 2013, star's net assets had a total carrying amount of $420,000. equipment (8-year remaining life) was undervalued on star's financial records by $80,000. any remaining excess fair value over book value was attributed to a customer list developed by star (4-year remaining life), but not recorded on its books. star recorded income of $70,000 in 2013 and $80,000 in 2014. each year since the acquisition, star has paid a $20,000 dividend. at january 1, 2015, pride's retained earnings show a $250,000 balance.
selected account balances for the two companies from their separate operations were as follows:
pride star
2015 revenues $498,000 $285,000
2015 expenses 350,000 195,000
what is consolidated net income for 2015?
$238,000.
$197,500.
$203,000.
$194,000.

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100

Any point on a country's production possibilities frontier represents a combination of two goods that an economy: