At Pleasant Pools Inc., there is a total focus on providing care and satisfaction to each customer. In the Prominent Clients division, each manager is assigned three employees to supervise, whereas in the Component Assembly division, each manager supervises about 15 employees. The Prominent Clients division managers can be described as having as opposed to for the Component Assembly division managers.

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?