Here are simplified financial statements of phone corporation from a recent year: income statement(figures in millions of dollars) net sales 13,600 cost of goods sold 4,310 other expenses 4,162 depreciation 2,668 earnings before interest and taxes (ebit) 2,460 interest expense 710 income before tax 1,750 taxes (at 30%) 525 net income 1,225 dividends 906 balance sheet(figures in millions of dollars)end of year start of year assets cash and marketable securities 94 163 receivables 2,632 2,590 inventories212 263 other current assets 892 957 total current assets 3,830 3,973 net property, plant, and equipment 20,023 19,965 other long-term assets 4,266 3,820 total assets 28,119 27,758 liabilities and shareholders

On july 1, 2016, killearn company acquired 103,000 of the outstanding shares of shaun company for $21 per share. this acquisition gave killearn a 40 percent ownership of shaun and allowed killearn to significantly influence the investee's decisions. as of july 1, 2016, the investee had assets with a book value of $6 million and liabilities of $1,468,500. at the time, shaun held equipment appraised at $140,000 above book value; it was considered to have a seven-year remaining life with no salvage value. shaun also held a copyright with a five-year remaining life on its books that was undervalued by $562,500. any remaining excess cost was attributable to goodwill. depreciation and amortization are computed using the straight-line method. killearn applies the equity method for its investment in shaun. shaun's policy is to declare and pay a $1 per share cash dividend every april 1 and october 1. shaun's income, earned evenly throughout each year, was $580,000 in 2016, $606,600 in 2017, and $649,200 in 2018. in addition, killearn sold inventory costing $93,000 to shaun for $155,000 during 2017. shaun resold $97,500 of this inventory during 2017 and the remaining $57,500 during 2018.a. determine the equity income to be recognized by killearn during each of these years. 2016 2017 2018b. compute killearn’s investment in shaun company’s balance as of december 31, 2018.

Describe the three different ways the argument section of a cover letter can be formatted

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.