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leva [86]
3 years ago
6

Jansen Inc. acquired all of the outstanding common stock of Merriam Co. on January 1, 2019, for $257,000.Annual amortization of

$19,000 resulted from this acquisition.Jansen reported net income of $70,000 in 2019 and $50,000 in 2020 and paid $22,000 in dividends each year.Merriam reported net income of $40,000 in 2019 and $47,000 in 2020 and paid $10,000 in dividends each year.What is the Investment in Merriam Co. balance on Jansen's books as of December 31, 2020, if the equity method has been applied
Business
1 answer:
Semenov [28]3 years ago
6 0

Answer:

$286,000.

Explanation:

Calculation for the Investment in Merriam Co. balance on Jansen's books as of December 31, 2013, if the equity method has been applied

Using this formula

Investment balance=Common stock+ 2019 Reported net income+2020 Reported net income-Dividends-Annual amortization- Dividends-Annual amortization

Let plug the formula

Investment balance=$257,000 + $40,000 + $47,000 - $10,000 - $19,000 - $10,000 - $19,000

Investment balance= $286,000

Therefore the Investment in Merriam Co. balance on Jansen's books as of December 31, 2013, if the equity method has been applied will be $286,000

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You just won the Powerball and are offered two payment options: 1) Receiving $80 million per year for 25 years beginning at next
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Answer: $80 million per year for 25 years

Explanation:

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The annual payment is an annuity so the present value can be calculated by:

Present value of annuity = Annuity payment * Present value interest factor, rate, no. of years

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7 0
3 years ago
What term is used to describe a technical, physical, or administrative process designed to reduce risk?
kvv77 [185]

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4 0
3 years ago
Orioles Company bought Special Products Division in 2017 and appropriately recorded $741,000 of goodwill related to the purchase
goldfiish [28.3K]

Answer:

No goodwill impairment should be recognized by Orioles in 2018

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3 years ago
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