On january 2, matthews corporation acquired 20% of the outstanding common stock of dernier company for $700,000. for the year ended december 31, dernier reported net income of $180,000 and paid cash dividends of $60,000 on its common stock. at december 31, the carrying value of matthews' investment in dernier under the equity method is:

a. $688,000.
b. $700,000.
c. $712,000.
d. $724,000.

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500