Small Company reported 20X7 net income of $49,000 and paid dividends of $17,000 during the year. Mock Corporation acquired 40 percent of Small’s shares on January 1, 20X7, for $95,000. At December 31, 20X7, Mock determined the fair value of the shares of Small to be $131,000. Mock reported operating income of $88,000 for 20X7. RequiredCompute Mock's net income for 20X7 assuming it usesa. the cost method in accounting for its investment in Smallb. the equity method in accounting for its investment in Smallc. the fair value method in accounting for its investment in Samll

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.