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Question - On January 1, 2018, Nana Company paid $100,000 for 8,500 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $56,000 for the year ended December 31, 2018. The fair value of the Papa stock on that date was $51 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2018?
a. $433,500.
b. $388,500.
c. $373,500.
d. $358,500.
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