The university computer lab is having difficulty controlling its costs, but is also concerned with revenues. Analysis showed that a key issue is the cost of printer supplies (ink, paper, and machine repair). Which strategy is likely to create the greatest amount of revenue for the lab, if a typical student use is 200 copies per month? A. Plan A: requiring students to pay 12 cents per copy
B. Plan B: charging a fee of $20 for the first 100 copies per month, then 10 cents per copy thereafter
C. Plan C: charging a fee of $10 for the first 50 copies per month, then 15 cents per copy thereafter
D. Plan D: adding a flat lab fee of $30 per academic term
E. All of the choices are correct

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.

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