Although the practice of predatory pricing is a common claim in antitrust suits, some economists are skeptical of this argument because they believe A. even though predatory pricing is a profitable business strategy, it is on balance beneficial to society. B. predatory pricing is not a profitable business strategy. C. predatory pricing actually attracts new firms to the industry. D. the evidence of its practice is nearly impossible to collect.

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?