On January 1, 2017, Franel Co. acquired all of the common stock of Hurlem Corp. For 2017, Hurlem earned net income of $360,000 and paid dividends of $190,000. Amortization of the patent allocation that was included in the acquisition was $6,000.How much difference would there have been in Franel's income with regard to the effect of the investment, between using the equity method or using the partial equity method of internal recordkeeping?
A. $174,000.
B. $354,000.
C. $170,000.
D. $164,000.
E. $6,000.
Answer: E
You might also like to view...
Describe conformist and alienated followers. Why is each considered ineffective follower behavior?
What will be an ideal response?
A public notice is often referred to as what?
A) A goodwill message B) An announcement C) A persuasive message D) A blog post E) A call to action
The job that arrived first at a work center or machine will be processed first and completed. Which of the following priority rules does this statement represent?
A. first come, first served B. shortest processing time C. critical ratio D. earliest due date
Moves to improve a diversified company's overall performance do not include
A. sticking closely to the existing business lineup and pursuing the growth opportunities presented by these businesses. B. broadening the company's business scope by making new acquisitions in new industries. C. retaining weak-performing businesses in order to sustain a wide base of business operations. D. restructuring the company's business lineup and putting a whole new face on the company's business makeup. E. retrenching to a narrower base of business operations.