Question 8 of 10 Which statement about 401(k) plans is true?
A. Employees are not allowed to make contributions to 401(k) plans.
B. 401(k) plans provide only one option for investment.
C. Employees can contribute an unlimited amount of income to
401(k) plans.
O D. 401(k) plans are sponsored by employers.

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?