INVESTMENTS&ANALYSIS -Page5 24, on January 1, 2002, Belle Corporation purchased 25% of the comon stock outstanding of Mann Corporation for $200,000. During 2002, Mann Corporation reported net income of seo,000 and paid cash dividends of $40, 000. The balance of the Stock Investments-Man account on the books of Belle Corporation at December 31, 2002 a. $200, 000 b. $210,000 c. $220,000 d. $190, 000 25. Under the equity method, the stock Investsents account in increased when the b. investee company pays a dividend d. stock investment is sold at a gain. 26. If one company owns nore than 50s of the conmon stock of another a. the cost method should be used to account for the investment b. a partnerahip exiats d, the company whose ntock i. owned must be quidated 27. Short-term Stock Investmenta should be valued on the balance sheet a. the lower ot coat or fair value. b. the higher of cost or tair value. 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 secarities held by the c. is closed at the end of each aceounting period appears on the income statement as other Expensea and Losses. Greer Corporation's trading porttollo at the end ot the year is as followa Coat Security $11,000 6,000 $20,000 9,000 Common Stock A Common Stock B $17,000 $19,000