1. On January 1, 2019, HK Corp. paid $800,000 for 100,000 shares of Jackie Company's common stock, which represents 30% of Jackies outstanding common stock. Jackie reported net income of $50,000 and paid cash dividends of $6,000 during 2019. HK should report the investment in Jackie Company on its December 31, 2019, balance sheet at:

   	a.	$825,000
   	b.	$809,500
   	c.	$800,000
   	d.	$813,200

2. If the cost method is used to account for a long-term investment in common stock, dividends received should be

   	a.	recorded only when 20% or more of the stock is owned.
   	b.	credited to the Stock Investments account.
   	c.	credited to the Dividend Revenue account.
   	d.	debited to the Stock Investments account.