On

January

$1,$

$2025,$

Cooley, Inc.

decides to invest in

$4,500$

shares of

Horsepasture

stock when the stock is selling for

$ $18$

per share. On

May

$1,$

$2025,$

Horsepasture

paid a

$ $0\mathrm{.}70$

per share cash dividend to stockholders. On December$31,$

$2025,$

Horsepasture

reports net income of

$ $130,000$

for

$2025.$

Assume

Horsepasture

has

$15,000$

shares of voting stock outstanding during

$2025$

and

Cooley, Inc.

has significant influence over

Horsepasture.

Read the requirements.

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Question content area bottom

Part $1$

Requirement $1.$ Identify what type of investment the

Horsepasture

stock is for

Cooley, Inc..

Cooley, Inc.$\text{'}$s

investment would be

a controlling interest

investment.