Blossom, Inc. acquired 40% of Splish Corporation's voting stock on January 1, 2021 for $1100000. During 2021, Splish earned $430000 and paid dividends of $270000. Blossom's 40% interest in Splish gives Blossom the ability to exercise significant influence over Splish's operating and financial policies. During 2022, Splish earned $530000 and paid cash dividends of $170000 on April 1 and $170000 on October 1. On July 1, 2022, Blossom sold half of its stock in Splish for $690000 cash. The carrying amount of this investment in Blossom's December 31, 2021 balance sheet should be

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?