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.

---

Definitions:

Midwife

An individual who helps women in childbirth.

Oxytocin

A hormone and neurotransmitter that plays an important role in the social bonding, sexual reproduction, and the period around childbirth.

Pituitary Gland

The body’s “master gland,” which is located in the lower central part of the brain and which secretes many hormones essential to development, such as oxytocin, prolactin, and growth hormone.

Adrenal Glands

Endocrine glands located above the kidneys, responsible for producing critical hormones, including adrenaline and cortisol, that regulate stress responses and metabolism.