Examlex

Solved

Jansen Inc

question 105

Multiple Choice

Jansen Inc. acquired all of the outstanding common stock of Merriam Co. on January 1, 2010, for $257,000. Annual amortization of $19,000 resulted from this acquisition. Jansen reported net income of $70,000 in 2010 and $50,000 in 2011 and paid $22,000 in dividends each year. Merriam reported net income of $40,000 in 2010 and $47,000 in 2011 and paid $10,000 in dividends each year. What is the Investment in Merriam Co. balance on Jansen's books as of December 31, 2011, if the equity method has been applied?


Definitions:

Intelligence Test

A standardized test designed to measure human intelligence as distinct abilities or as a single general ability.

Current Name

The present or most recent name or designation of an entity, individual, or concept.

Terman Revised

An updated version of a psychological test or intelligence scale originally developed by Lewis Terman, often referring to the Stanford-Binet Intelligence Scales.

David Wechsler

A psychologist known for developing several widely used intelligence scales, including the Wechsler Adult Intelligence Scale (WAIS).

Related Questions