The following data are taken from the management accounting reports of Dancer Co.: Div. A Div. B Div. C
Income from operations $3,600,000 $3,700,000 $2,700,000
Total service department charges 3,400,000 2,100,000 2,200,000

If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that
a. Division A's manager is given the bonus.
b. Division B's manager is given the bonus.
c. Division C's manager is given the bonus.
d. the managers of Divisions B and C divide the bonus.

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.