On january 1, 2017, stream company acquired 30 percent of the outstanding voting shares of q-video, inc., for $770,000. q-video manufactures specialty cables for computer monitors. on that date, q-video reported assets and liabilities with book values of $1.9 million and $700,000, respectively. a customer list compiled by q-video had an appraised value of $300,000, although it was not recorded on its books. the expected remaining life of the customer list was five years with straight-line amortization deemed appropriate. any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill.
q-video generated net income of $250,000 in 2017 and a net loss of $100,000 in 2018. in each of these two years, q-video declared and paid a cash dividend of $15,000 to its stockholders.
during 2017, q-video sold inventory that had an original cost of $100,000 to stream for $160,000. of this balance, $80,000 was resold to outsiders during 2017, and the remainder was sold during 2018. in 2018, q-video sold inventory to stream for $175,000. this inventory had cost only $140,000. stream resold $100,000 of the inventory during 2018 and the rest during 2019.
for 2017 and then for 2018, compute the amount that stream should report as income from its investment in q-video in its external financial statements under the equity method?

1. gar principles or "the principles"are intended to do what?

Sharon had some insider information about a corporate takeover. she unintentionally informed a friend, who immediately bought the stock in the target corporation. the takeover occurred and the friend made a substantial profit from buying and selling the stock. the friend told sharon about his stock dealings, and gave her a pearl necklace because she "made it all possible." the necklace was worth $10,000, but she already owned more jewelry than she desired.

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.