On january 1, 2017, henry manufacturing corporation purchased a machine for $40,600,000. henry's management expects to use the machine for 33,000 hours over the next six years. the estimated residual value of the machine at the end of the sixth year is $45,000. the machine was used for 3,600 hours in 2017 and 5,000 hours in 2018. calculate the book value of the machine at the end of 2018 if the company uses the units-of-production method of depreciation. (round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

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?