A mom and pop gas station near a remote lake popular with anglers is more likely to use a periodic review system than a chain of department stores

Clark Company purchased 40% of Irene Company's stock for $125,000 on January 1. On May 20 of the same year, Irene Company declared total cash dividends of $30,000. At year-end, Irene Company reported net income of $150,000. The balance in Clark Company's Long-Term Investment in Irene Company as of December 31 should be:

A) $ 77,000. B) $245,000. C) $173,000. D) $185,000. E) $197,000.

Refer to the information above. Of Hugh's budgeted debt service cost of $6,000 in March, the amount applied to the principal of the note totals:

A. $500. B. $4,000. C. $4,500. D. $5,000.