If Nolte Company Acquired a 30% Interest in Boswell Company

question 51

Multiple Choice

If Nolte Company acquired a 30% interest in Boswell Company on December 31, 2011 for $67,500 and during 2012 Boswell Company had net income of $25,000 and paid a cash dividend of $10,000, applying the equity method would give a debit balance in the
Investment in Boswell Company account at the end of 2012 of

• A)$72,000.
• B)$67,500.
• C)$75,000.
• D)$72,500.

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Definitions:

Perceptual Benefit

Perceptual benefit refers to the subjective value or advantage that consumers perceive in a product or service, which influences their decision-making process.

Marketing Strategy

The comprehensive plan formulated particularly for achieving the marketing objectives of the organization; it includes campaigns, actions, and decisions to build and sustain a competitive market position.

Dispenser

A device designed to release a specific amount of material, such as soap, towels, or beverages, often for efficiency and convenience in various settings.

Functional

Refers to products or services designed to fulfill specific purposes or tasks.