Question - Use this information for Pierce Company to answer the following question.
On May 1, Pierce Company purchased $60,000 of Stanton Company's 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its first semiannual interest. On February 1, Pierce sold $50,000 of the bonds at 103 plus accrued interest.
What are the total proceeds from the February 1 sale?
a. $52,400
b. $50,000
c. $52,000
d. $51,500
Wendell Company owns 28% of the common stock of Porter Company and accounts for the investment using the equity method. Assuming that Wendell Company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the
a. investment plus the total amount of dividends Wendell has received from Porter since the investment was purchased
b. investment plus Wendell's share of Porter's net income earned since the investment was purchased minus the total amount of dividends Wendell has received from Porter since the investment was purchased
c. investment plus Wendell's share of Porter's net income earned since the investment was purchased
d. investment only