Jansen inc acquired all of the outstanding common stock of


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?

A. $286,000.

B. $295,000.

C. $276,000.

D. $344,000.

E. $324,000.

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Financial Accounting: Jansen inc acquired all of the outstanding common stock of
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