PLEASE ANSWER What bankruptcy provision has the bank chosen?

Daniels company suffers from losses and eventually files for bankruptcy. Since Daniels company deals with artifacts, the bank decides to opt for the () provision for bankruptcy. Through this provision, the company decides to auction the goods and recover a portion of the debt.

Fill in the blank above.

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?