1. Big uses the equity method. It invested $1 million in Little on Day 1 of Year 1, and got 25% of Littles stock. During the year Little declared a total of $40,000 in dividends, and had income of $60,000. Bigs income related to Little in Year 1 would be:
   1. 0
   2. $10,000
   3. $15,000
   4. $25,000
2. Using the same facts as in question 1, what would be the Investment in Little on Bigs book, using the equity method?
   1. $1,000,000
   2. $990,000
   3. $1,005,000
   4. $1,015,000
   5. $1,025,000
3. Using the same facts as in problem 1, what would be Bigs income related to Little if Big used the Cost method?
   1. 0
   2. $10,000
   3. $15,000
   4. $25,000
4. Using the same facts as in question 1, what would be the Investment in Little on Bigs book, using the cost method?
   1. $1,000,000
   2. $990,000
   3. $1,005,000
   4. $1,015,000