In may 1995 when the exchange rate was 80 yen per dollar, japan life insurance company invested ¥800,000,000 (i. e., $10,000,000) in pure-discount u. s. bonds. the investment was liquidated one year later when the exchange rate was 110 yen per dollar. if the rate of return earned on this investment was 46% in termsof yen, calculate the dollar amount that the bonds were sold at.

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?