On june 1, 2018, blue co. distributed to its common stockholders 180,000 outstanding common shares of its investment in red, inc. an unrelated party. the book value on blue’s books of red's $1 par common stock was $1.20 per share. immediately after the declaration, the market price of red's stock was $3.40 per share. in its income statement for the year ended june 30, 2018, what amount should blue report as gain before income taxes on disposal of the stock? (do not round your intermediate calculation.)

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year. what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units