William burris invested $100,000 in an australian-based franchise, rent your boxes, purchasing three territories in the washington area. after finding out the company had gone bankrupt, he rallied 10 other franchisees to join him and created a new company, rent our boxes. assume rent our boxes had net income of $39,902 with net sales of $296,585. what was its profit margin on net sales?

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?