Which one of the following statements is TRUE?a. If a company has a classified board, fewer board seats are filled each year. b.A classified board is one in which the board members serve anonymously. c.In a classified board, it is easier for dissidents to gain representation since fewer seats are up for election each year. d.A classified board is one in which an announcement requesting applications for board members appears in the newspaper. e.One tool of corporate governance is choosing a good investment banker.

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?