On january 1, 2016, halstead, inc., purchased 75,000 shares of sedgwick company common stock for $1,521,000, giving halstead 25 percent ownership and the ability to apply significant influence over sedgwick. any excess of cost over book value acquired was attributed solely to goodwill. sedgwick reports net income and dividends as follows. these amounts are assumed to have occurred evenly throughout these years. dividends are declared and paid in the same period. net income annual cash dividends (paid quarterly) 2016 $364,000 $100,000 2017 486,000 134,000 2018 608,000 163,000 on july 1, 2018, halstead sells 14,000 shares of this investment for $25 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence. determine the amounts that would appear on halstead's 2018 income statement relating to its ownership and partial sale of its investment in sedgwick's common stock.

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.