Which statement indicates an unfair trade practice? country x has trade agreements with many countries, including countries a, b, and c. country x is a major exporter of iron, steel, and cheese. its major imports include tuna, wheat, and electronic equipment. in 2011, marlene dairy farm, one of the leading cheesemakers in country x, produced a record 70,000 tons of cheese. marlene’s patented technology enabled it to produce cheese at the cost of $3 per ounce. but about 5% of the product was declared unfit for consumption. that rejected cheese had to be thrown away in keeping with state food waste management guidelines. the rest of the cheese was exported to three countries. country x exported the cheese to country b at a price of $2 per ounce. country c bought the cheese at $4 per ounce. country x sold the cheese to country d for $4.5 per ounce. by 2013, marlene’s was among the top five cheese exporters in the world.

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.