The program whereby taxes are deducted from employees' checks, proceeds are put into a trust fund, and distributed to the elderly, disabled, widowed, and unemployed is know as a. the federal debt. b. the social security system. c. the federal reserve system. d. the internal revenue service.

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?