ENVESTMENTS ANALYSISPage s 24. On January 1, 2002, Belle Corporation purchas stock outstanding of Mann corporation tor $200,000, During 2002 Mann Corporation reported net income of seo,000 and paid cash dividende of $40,000. The balance of the stoek InvestmentnMantn account on the books of Belle Corporation at December 31, 2002 1 $20o, 000 b. $210,000 C. $220,000 d $190, 000 ed 25% of the eommon 25. Under the equity meth od, the stock tnvestmente account in inereased when the a. investee company reports net income c. investee company reports a loss -b. investee company pays a dividend d. stock investment is sold at a gain 26. If one company owns more than 50% of the common stock of another a. the cost method should be used to account for the investmenst b a partnership exists c. a parent-subsidiary relationship exists d. the company whose stock is owned must be liquidated 27. Short-term Stock Investments should be valued on the balance sheet a. the lower of cost or fair value b. the higher of cost or fair value C. Cost d. fair value 28. The Market Adjustment account a. is set up for each security in the company's portfolio. b. relates to the entire portfolio of securities held by the company c. is closed at the end of each accounting period d. appears on the income statement as other Expenses and Losses Greer Corporation's trading portfolio at the end of the year is as follows: Market Value Cost Security $11,000 6,000 $10,000 9,000 Common Stock A Common Stock B $17,000 $19,000