Jansen Inc

Multiple Choice

Jansen Inc.acquired all of the outstanding common stock of Merriam Co.on January 1,2009,for $257,000.Annual amortization of $19,000 resulted from this acquisition.Jansen reported net income of $70,000 in 2009 and $50,000 in 2010 and paid $22,000 in dividends each year.Merriam reported net income of $40,000 in 2009 and $47,000 in 2010 and paid $10,000 in dividends each year.What is the Investment in Merriam Co.balance on Jansen's books as of December 31,2010,if the equity method has been applied?

A) $286,000.
B) $296,000.
C) $276,000.
D) $344,000.
E) $300,000.