Senida is approached by a sales person to buy some perfume. the sales person uses the foot-in-the-door technique of gaining compliance to make senida feel a need to buy the perfume. the sales person is taking advantage of the principle of to persuade senida to buy the perfume.

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?