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Dafna1 [17]
3 years ago
13

Jarmon Company owns twenty-three percent (23%) of the voting common stock of Kaleski Corp. Jarmon does not have the ability to e

xercise significant influence over the operations of Kaleski. What method should Jarmon use to account for its investment in Kaleski
Business
1 answer:
kozerog [31]3 years ago
8 0

Answer: Cost method

Explanation:

The method that Jarmon should use to account for its investment in Kaleski is the cost method.

Since it's a cost method, Kaleski should record the investment in stocks at cost, that is the price that was paid for the stock. In this case, most stocks from the other investors are purchased through the brokers.

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Their task is, as the question specifies, to define the general policy of the company, including goals and strategies to achieve those goals. In a way, companies are just like nations, they have top executives like the president or the president of the senate, who define the direction in which the company/country will go.

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