Fictional town A has a population of 200,000. In town A, 100,000 are 16 years of age or older. There are 60,000 working full time and 5,000 working part time. There are 5,000 people not working but looking for work. The remaining population are either retired or full time students

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of