25) David, Inc. used the equity method of accounting for its investment in Russell Company. At December 31, 2017, the investment account balance was $4,500 after all adjustments were recorded. The following is additional information

David's share of Russell's' 2017 net income	$2,300
David's share of 2017 depreciation of Russell equipment	100
David's dividends received from Russell in 2017	700

What was the January 1, 2017 balance in Investment in Russell Company?

$3,800

$3,000

$2,300

$2,900

28) Warren, Inc. purchased a $400,000 life insurance policy on the company president on January 1, 2017. The premium that was paid on January 1 amounted to $11,600. In the first year, cash surrender value increased by $900 and dividends received by Warren from the insurance company for the year amounted to $300. What was Warren's insurance expense for 2017?

$10,400

$12,500

$11,000

$12,800

30) The Frank Company has issued 10%, fully participating, cumulative preferred stock with a total par value of $300,000 and common stock with a total par value of $900,000. Dividends for one previous year are in arrears. How much cash will be paid to the preferred stockholders and the common stockholders, respectively, if cash dividends of $222,000 are distributed at the end of the current year?

$85,500 to preferred and $136,500 to common

$78,000 to preferred and $144,000 to common

$55,500 to preferred and $166,500 to common

$60,000 to preferred and $162,000 to common