Matthew, inc. owns 30 percent of the outstanding stock of lindman company and has the ability to significantly influence the investee’s operations and decision making. on january 1, 2018, the balance in the investment in lindman account is $348,000. amortization associated with this acquisition is $16,900 per year. in 2018, lindman earns an income of $98,000 and declares cash dividends of $49,000. previously, in 2017, lindman had sold inventory costing $29,400 to matthew for $42,000. matthew consumed all but 25 percent of this merchandise during 2017 and used the rest during 2018. lindman sold additional inventory costing $46,200 to matthew for $70,000 in 2018. matthew did not consume 40 percent of these 2018 purchases from lindman until 2019. what amount of equity method income would matthew recognize in 2018 from its ownership interest in lindman? what is the equity method balance in the investment in lindman account at the end of 2018?

Georgia orchards produced a good crop of peaches this year. after preparing the following income statement, the company is concerned about the net loss on its no. 3 peaches. georgia orchards income statement for year ended december 31, 2017 no. 1 no. 2 no. 3 combined sales (by grade) no. 1: 300,000 ibs. @ $1.50/lb $ 450,000 no. 2: 300,000 ibs. @ $1.00/lb $ 300,000 no. 3: 750,000 ibs. @ $0.25/lb $ 187,500 total sales $ 937,500 costs tree pruning and care @ $0.30/ib 90,000 90,000 225,000 405,000 picking, sorting, and grading @ $0.15/ib 45,000 45,000 112,500 202,500 delivery costs 15,000 15,000 37,500 67,500 total costs 150,000 150,000 375,000 675,000 net income (loss) $ 300,000 $ 150,000 $ (187,500 ) $ 262,500 in preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. the company’s delivery cost records show that $30,000 of the $67,500 relates to crating the no. 1 and no. 2 peaches and hauling them to the buyer. the remaining $37,500 of delivery costs is for crating the no. 3 peaches and hauling them to the cannery. required: 1. prepare reports showing cost allocations on a sales value basis to the three grades of peaches. separate the delivery costs into the amounts directly identifiable with each grade. then allocate any shared delivery costs on the basis of the relative sales value of each grade. (do not round intermediate calculations.)