On January 1,2010,Alden Company Acquired 15,000 Shares of the Nonvoting

On January 1,2010,Alden Company acquired 15,000 shares of the nonvoting common stock of Maxim Corporation as a long-term investment.Maxim reported a 2010 net income of $35,000.On January 2,2011,Maxim declared and paid a $10,000 cash dividend.The market value of the Maxim stock held by Alden on December 31,2010,was $224,000.Alden Company has recorded only the following journal entries:


$\begin{array}{lccc}\text { January 1, 2010:} \\ \text { Long-term investment, Maxim stock (15,000 shares) } & 225,000 & \\\text {Cash}&&225,000\\\\ \text { December 31,2010 (end of the accounting period): } && \\\text {No entry}&&\\\\\text { January 2, 2010:} \\\text {Cash}&400&\\ \text { Investment income } && 400\\\end{array}$
Based on the above information,answer the following questions:
A.What method did Alden use to account for the investment?
B.Did Alden fail to make an adjusting entry on December 31,2010?
C.What condition,if changed,would require that the equity method be used?
D.Assuming the market value method is used; calculate the valuation of the net investment on January 3,2011.