Excluding a short-term obligation from current liabilities can be done when:- a. the liability is contractually due to be settled more than one year after the balance sheet date.
b. the company enters into a financing agreement that permits the company to refinance the debt on a long-term basis.
c. the company has a contractual right to defer settlement of the liability for at least one year after the balance sheet date.
d. all of these answers are correct.

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?