Jansen Inc

question 53

Multiple Choice

Jansen Inc. acquired all of the outstanding common stock of Merriam Co. on January 1, 2012, for $257,000. Annual amortization of $19,000 resulted from this acquisition. Jansen reported net income of $70,000 in 2012 and $50,000 in 2013 and paid $22,000 in dividends each year. Merriam reported net income of $40,000 in 2012 and $47,000 in 2013 and paid $10,000 in dividends each year. What is the Investment in Merriam Co. balance on Jansen's books as of December 31, 2013, 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:

Relational Architecture

The structured design and arrangement of relationships within organizations or systems, focusing on how components or individuals relate to each other.

Work Design Characteristics

Elements and features of how jobs are structured and organized that influence employee motivation, satisfaction, and performance.

Motivational Characteristics

Traits or factors that drive an individual's behavior and efforts towards achieving certain goals or tasks.

Task Characteristics

Attributes or aspects that define the nature of a task, including complexity, variety, autonomy, and significance.