Servicepro provides two kinds of services. during the most recent accounting period, the two service lines produced the following operating results:

service 1 service 2
service revenue $ 110,000 $ 40,000
unit-level materials $ (26,000) $ (8,000)
unit-level labor $ (36,000) $ (20,000)
product-level selling
& administrative costs $ (16,000) $ (9,500)
company wide
facility-level costs $ (4,000) $ (4,000)
net income $ 28,000 $ (1,500)

if the company stops providing service 2:

the company's income will increase by $3,500 per year.
the company's income will decrease by $3,500 per year.
the company's income will increase by $2,500 per year.
the company's income will decrease by $2,500 per year.

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate. the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received. c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.