Tread inc. is the market leader for sports shoes in the subcontinent of gavon. though the brand has not introduced any new product lines over the past decade, its signature products enjoy a high demand and have always remained popular. according to the concept of advertising response function,
which of the following should be tread inc.'s advertising strategy?
a. it should spend proportionately less on advertising than on a newer line.
b. its advertisements should easily affect target consumers' deeply rooted values and attitudes.
c. it should penetrate consumers' perceptual defenses and affect purchase intentions.
d. it should have a large budget for advertising expenditures.

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.