Peel company owns 90% of the common stock of seacore company. seacore company sells merchandise to peel
company at 20% above cost. during 2014 and 2015, such sales amounted to $436,000 and $532,000, respectively.
at the end of each year, peel company had in its inventory one-fourth of the goods purchased from seacore
company during that year.
peel company reported $300,000 in net income from its independent operations in 2014 and 2015. seacore
company reported net income of $130,000 in each year and did not declare any dividends in any year. there were
no intercompany sales prior to 2014.
required:
a. prepare in general journal form all entries necessary on the consolidated financial statements workpaper to
eliminate the effects of the intercompany sales for each of the years 2014 and 2015.
b. calculate the amount of noncontrolling interest to be deducted from consolidated income in the consolidated
income statement for 2015.
c. calculate controlling interest in consolidated income for 2015.

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

Rats that received electric shocks were unlikely to develop ulcers if the

Robert black, regional manager for ford in texas and oklahoma, faced a dilemma. the ford f-150 pickup truck was the best-selling pickup ever, yet ford's headquarters in detroit had decided to introduce a completely redesigned f-150. how could mr. black sell both trucks at the same time? he still had "old" f-150s in stock. in his advertising, mr. black referred to the new f-150s as follows: "not a better f-150. just the only truck good enough to be the next f-150." this statement represents ford's of the new f-150.