Jansen Inc

question 52

Multiple Choice

Jansen Inc.acquired all of the outstanding common stock of Merriam Co.on January 1,2009,for $257,000.Annual amortization of $19,000 resulted from this acquisition.Jansen reported net income of $70,000 in 2009 and $50,000 in 2010 and paid $22,000 in dividends each year.Merriam reported net income of $40,000 in 2009 and $47,000 in 2010 and paid $10,000 in dividends each year.What is the Investment in Merriam Co.balance on Jansen's books as of December 31,2010,if the equity method has been applied?

• A)$286,000.
• B)$296,000.
• C)$276,000.
• D)$344,000.
• E)$300,000.

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Definitions:

Cooperative Conflict

A conflict resolution strategy where parties work together to find a mutually beneficial solution to their disagreement.

Best Interests

Considerations centered around the optimal outcomes or advantages for an individual or group, especially in legal, financial, or personal decisions.

Formal Authority

Describes the power granted to an individual or position through a formal structure or hierarchy within an organization to make decisions and command obedience.

Conflict Resolution

The process of resolving disputes or disagreements between parties through dialogue, negotiation, or other methods to reach an agreement.