Question - Feng Company purchased 10,000 of 250,000 shares of common stock of Minkow Corporation on January 1, 2006, at $40 per share as a long-term investment. The records of Minkow Corporation showed the following on December 31, 2006:
Net Income: $575,000
Dividends Paid: $30,000
Market Price per Share: $38
What amount should Feng Company report on its December 31, 2006, balance sheet for its investment in Minkow?
a. $380,000
b. $400,000
c. $423,000
d. $421,800
e. None of the above is correct.