Suppose you are employed by a pension fund that has been asked to lend $100 million to help finance the Kashagan project. The consortium members are willing to pay an interest rate 5% above the rate currently being paid by U. S. Treasury bills, so your boss is definitely interested in examining the proposal. Your boss assigns you the task of conducting a political risk assessment of the project. Being by listing all the types of political risks that could possibly affect the ability of your pension fund to receive interest payments and the return of its principal in timely fashion. Having developed this list, assess the likelihood that the risks will arise. Which ones are most critical to you? What can you do to reduce these risks to your pension fund?

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.