In its financial statements, Pare, Inc. uses the cost method of accounting for its 15% ownership of Sabe Co. At December 31, 2010, Pare has a receivable from Sabe. How should the receivable be reported in Pare’s December 31, 2010 balance sheet?

a. The total receivable should be reported separately.

b. The total receivable should be included as part of the investment in Sabe, without separate disclosure.

c. 85% of the receivable should be reported separately, with the balance offset against Sabe’s payable to Pare.

d. The total receivable should be offset against Sabe’s payable to Pare, without separate disclosure.