________ are wholesalers who serve grocery and drug retailers, mostly in nonfood items. They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory records
A) Purchasing agents
B) Rack jobbers
C) Drop shippers
D) Cash-and-carry wholesalers
E) Manufacturers' agents
B
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Indicate whether the statement is true or false
Crush Enterprises purchased 500,000 of the 1,000,000 outstanding shares of Carly Casualties for $4,500,000 on 1/1/16. On the date of the investment, Carly had net assets with a book value of $9,500,000 and fair value of $10,000,000. This difference is the result of equipment (remaining 10 year life) with a higher fair value than book value. Crush has significant influence over Carly and will
account for this investment using the equity method. During the year, Carly declared dividends of $125,000 and reported Net Income of $1,300,000. What is the balance in the Investment in Carly account at year end? A) $5,087,500 B) $5,037,500 C) $5,062,500 D) $3,887,500