Jansen Inc

question 109

Multiple Choice

Jansen Inc.acquired all of the outstanding common stock of Merriam Co.on January 1, 2017, for $257,000.Annual amortization of $19,000 resulted from this acquisition.Jansen reported net income of $70,000 in 2017 and $50,000 in 2018 and paid $22,000 in dividends each year.Merriam reported net income of $40,000 in 2017 and $47,000 in 2018 and paid $10,000 in dividends each year.What is the Investment in Merriam Co.balance on Jansen's books as of December 31, 2018, if the equity method has been applied?

• A) $286,000.
• B) $295,000.
• C) $276,000.
• D) $344,000.
• E) $324,000.

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Definitions:

Morals

Morals refer to beliefs and values about what is right and wrong, guiding individuals' behavior and interactions within society.

Checks and Balances

Checks and balances is a principle in government where separate branches are empowered to prevent actions by other branches and are induced to share power, ensuring no single branch becomes too powerful.

Branches

Divisions or offshoots of a larger organization, company, or government that operate semi-autonomously, often with a specific local or functional focus.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.