QUESTION 4

1. Huge pays $10,000,000 and buys 30% of Minor on Jan.1, Year 1. Huge accounts for this investment using the equity method. During Year 1, Minor has total net income of $400,000 and pays total dividends, to all it shareholders, of $100,000. Huges investment in Minor at the end of Year 1 is:

   	a.	$10,400,000
   	b.	$10,120,000
   	c.	$10,090,000
   	d.	$10,000,000