Explanation: Economic theory is a valuable tool for business decision making because it identifies for manager the essential information for making a decision since through certain assumptions about essential aspects, it allows managers to test and differentiate the possible results according to the relevant information that it provides to make a decision.

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3 years ago

Jansen Inc. acquired all of the outstanding common stock of Merriam Co. on January 1, 2017, for $257,000. Annual amortization of

vlada-n [284]

Answer:

A, $286,000

Explanation:

Whenever there is equity method followed, for accounting of subsidiary then entire income and dividends received are accounted for in the cost of investment.

Here cost = $257,000

Add: all the incomes of Merriam = $40,000 + $47,000 = $87,000

Less: Any dividends received = $10,000 + $10,000 = $20,000

Less: Amortization = $19,000 + $19,000 = $38,000

Therefore, total carrying value = $257,000 + $87,000 - $20,000 - $38,000

= $286,000

In equity method therefore, carrying value on December 31, 2018 = $286,000

Final Answer

A, $286,000

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2 years ago

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Scenario 10 Two rival firms in duopoly (a market in which there are only two firms that compete) are considering spending on the

weqwewe [10]

Well that is a lot of explaining

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3 years ago

Selected information from the direct materials budget of Perry Inc. is provided here:

nalin [4]

Answer:

$320,000

Explanation:

The raw material purchase budget is determined by adjusted the raw material usage budget for the opening inventory and closing inventory budget

Raw material purchase budget = usage budget + closing inventory - opening inventory

Raw material closing inventory = 40% × Raw usage budget for second quarter

= 40% × 50,000 = 20,000

Raw material purchase budget for first quarter = 60,000 + 20,000 - 16,000

= 64,000 units

Raw material purchase budget =64,000 units × $5/unit

= $320,000

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2 years ago

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