On january 1, 2017, cale corp. paid $1,020,000 to acquire kaltop co. kaltop maintained separate incorporation. cale used the equity method to account for the investment. the following information is available for kaltop's assets, liabilities, and stockholders' equity accounts on january 1, 2017:

book value fair value
current assets $120,000 $120,000
land $72,000 $192,000
building (20 year life) $240,000 $268,000
equipment (10 year life) $540,000 $516,000
current liabilities $24,000 $24,000
long-term liabilities $120,000 $210,000
common stock $228,000
additional paid in capital $384,000
retained earnings $216,000

what is the balance in cale's investment in subsidiary account at the end of 2017?

(a) $1,099,000
(b) $1,020,000
(c) $1,096,000
(d) $1,098,000
(e) $1,144,000

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.

Which is not true of birthday and/or annual review automatics? a. the purpose is to trigger a telephone call for a face-to-face meeting. b. quarterly automatic contacts decrease cross-sales and lead to reduced referrals. c. you are expected to stay in touch with all your active prospects and clients through two personal contacts each year?

Dallas company uses a job order costing system. the company's executives estimated that direct labor would be $4,800,000 (160,000 hours at $30/hour) and that factory overhead would be $1,400,000 for the current period. at the end of the period, the records show that there had been 190,000 hours of direct labor and $1,100,000 of actual overhead costs. using direct labor hours as a base, what was the predetermined overhead rate? (round your answer to two decimal places.)