On January 2 2011 Well Co Purchased 10 Of Rea

On January 2, 2011, Well Co. purchased 10% of Rea Inc.’s outstanding common shares for $400,000. Well is the largest single shareholder in Rea, and Well’s officers are a majority on Rea’s board of directors. Rea reported net income of $500,000 for 2011, and paid dividends of $150,00. In its December 31, 2011, balance sheet, what amount should Well report as investment in Rea?
A) $435,000
B) $450,000
C) $400,000
D) $385,000

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