Idle Corporation has been acquiring shares of Fast Track Enterprises at book value for the last several years. Fast Track provided data including the following: 20X2 20X3 20X4 20X5 Net Income $ 41,000 $ 56,000 $ 41,000 $ 51,000 Dividends 23,000 23,000 13,000 23,000 Fast Track declares and pays its annual dividend on November 25 each year. Its net book value on January 1, 20X2, was $263,000. Idle purchased shares of Fast Track on three occasions: Date Percent of Ownership
Purchased Amount Paid
January 1, 20X2 10 % $ 25,300
July 1, 20X3 5 17,710
January 1, 20X5 14 70,840
Required:
a. Prepare the journal entries to be recorded on Idle’s books in 20X5 related to its investment in Fast Track.
b. Record purchase of Fast Track stock.
c. Record the pick-up of the difference between cost and equity income.
d. Record dividend from Fast Track Enterprises.
e. Record equity-method income.

Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains.the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available.two-thirds of the work related to $15,000 of cash received in advance was performed this period.the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired.wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.

Afirm’s production function is represented by q(m,r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?