On January 1, 2025, Badri, Inc. decides to invest in 10,000 shares of Fanish stock when the stock is selling for $15 per share. On August 1, 2025, Fanish paid a $0.50 per share cash dividend to stockholders. On December 31, 2025, Fanish reports net income of $80,000 for 2025. Assume Fanish has 25,000 shares of voting stock outstanding during 2025 and Badri, Inc. has significant influence over Fanish.

Requirements 

1. Identify what type of investment the Fanish stock is for Badri, Inc. 

2. Journalize the transactions related to Badri, Inc.’s investment in the Fanish stock during 2025. 

3. In what category and at what value would Badri, Inc.’s report the investment on the December 31, 2025, balance sheet?