Franco and elisa share income equally. during the current year the partnership net income was $40,000. franco made withdrawals of $12,000 and elisa made withdrawals of $17,000. at the beginning of the year, the capital account balances were: franco capital, $40,000; elisa capital, $58,000. franco’s capital account balance at the end of the year is

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?