Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Debit Credit
a. Interest revenue $ 14,000
b. Depreciation expense—Equipment $ 34,000
c. Loss on sale of equipment 25,850
d. Accounts payable 44,000
e. Other operating expenses 106,400
f. Accumulated depreciation—Equipment 71,600
g. Gain from settlement of lawsuit 44,000
h. Accumulated depreciation—Buildings 174,500
i. Loss from operating a discontinued segment (pretax) 18,250
j. Gain on insurance recovery of tornado damage 20,000
k. Net sales 998,000
l. Depreciation expense—Buildings 52,000
m. Correction of overstatement of prior year’s sales (pretax) 16,000
n. Gain on sale of discontinued segment’s assets (pretax) 34,000
o. Loss from settlement of lawsuit 23,250
p. Income tax expense ?
q. Cost of goods sold 482,500
a. What is the amount of income from continuing operations before income taxes?
b. What is the amount of the income tax expense?
c. What is the amount of income from continuing operations?
Assume that the company’s income tax rate is 30% for all items.

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.