Amie was recently hired at kreigmeister industries as a repairperson. she was informed that if she chose not join the union representing her fellow repair workers, she would still have to pay a fee to the union. apparently, kreigmeister operates under a(n):

a. illegal arrangement, since nonmembers can never legally be required to pay fees to unions.

b. closed shop agreement.

c. union shop agreement.

d. agency shop agreement

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of