Chapter 2 Exercises Question 15, BE2-22 (book/static) Indicate the assumption (going concern, business/economic entity, monetary unit, or periodicity) that best fits the following scenarios. Scenario Monro Manufacturing requires that its division managers report to a. corporate headquarters on a monthly basis. Rainbow Paints, Inc. owns 15% of New Eljam Company. Rainbow does not consolidate this affiliate company because it cannot control New b. Eljam's operations. Financial analysts at Nelson Corporation use an infinite-growth c. assumption in building a model to value the company. Factory buildings are reported on Jack Jones Warehousing, Inc.'s balance sheet as the sum of the total cost of two plants; one of the d. plants was acquired in 1951 and the other was purchased in 2011. Related Assumption