Common-size statements: Multiple Choice Reveal changes in the relative importance of each financial statement item to a base amount. Show the dollar amount of change for financial statement items. Do not emphasize the relative importance of each item. Compare financial statements over time. Reveal patterns in data across successive periods.

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?