On Jnuary 4 2011 Watts Co. Purchased 40,000 shares(40%) of the common stock of Adams...
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On Jnuary 4 2011 Watts Co. Purchased 40,000 shares(40%) of the common stock of Adams Corp., paying $800,000. There was no goodwill or other cost allocation associated with the investment. Watts has significant influence over Adams. During 2011, Adams reported income of 200,000 and paid dividends of 80,000. On January 2, 2012, Watts sold 5,000 shares for 125,000. What was the balance in the investment account after the shares had been sold?
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