Why should well report as investment in 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?

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Accounting Basics: Why should well report as investment in rea
Reference No:- TGS0699718

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