On January 1 , 2018, Rusty, Inc. decides to invest in 6,500 shares of Yearling stock when stock is selling for $20 share. On August 1 , 2018, Yearling paid a $0.30 per share cash dividend to stockholders. On December 31 2018, Yearling reports net income of $110,000 for 201B. Assume Yearling has 26,000 shares of voting stock outstanding during 2018 and Rusty has significant influence over Yearling. Required:
Identify what type of investment the Yearling stock for Rusty?

7. problems and applications q7 congress and the president decide that the united states should reduce air pollution by reducing its use of gasoline. they impose a $0.50 tax on each gallon of gasoline sold. suppose they decided to impose the tax on consumers. in the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on consumers by shifting the demand or supply curve. demand supply 0 1 2 3 4 5 6 3.0 2.5 2.0 1.5 1.0 0.5 0 price of gasoline (dollars per gallon) quantity of gasoline (thousands of gallons) demand s 1 s 2 true or false: the price producers receive will be higher if the tax were imposed on consumers. true false if the demand for gasoline were more elastic, this tax would be effective in reducing the quantity of gasoline consumed. true or false: consumers of gasoline are by this tax. true false workers in the oil industry are by this tax.