1) Jarden Tech owns 30% of Stark Inc. and accounts for the investment using the equity method. During the year, Stark reports a net loss of $1,250,000 and pays total dividends of $35,000. Which of the following describes the change in Jarden's investment in Stark during the year

A. The investment increases by $7,500

B. The investment decreases by $1,225,000

C. The investment decreases by $385,500

D. The investment decreases by $367,500

2) If Jensen, Inc. paid $4,000 at book value for its 25% stake in Storm Company, and in the next year total shareholders' equity for Storm Company increases by 75%, what will Jensen's interest of Storm's equity be? Jensen uses the equity method to account for its investment in Storm Company.

A. $7,000

B. $1,375

C. $ 875

D. $1,500