On January 4, 2013, 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 2013, Adams reported an income of $200,000 and paid dividends of $80,000. On January 2, 2014, Watts sold 5,000 shares for $125,000. What was the balance in the investment account after the shares had been sold?

Investment balance is $742,000

Explanation:

The treatment of associates will be in-accordance with equity method:

The equity method says that the investment must reflect its fair value.

The fair value of the investment = Cost of shares - Dividend's share Received  + Share of Profit invested

Value of Investment = $800,000 - $32000 ($80,000 Total Dividend * 40%)  + Reinvestment through Net Income $80,000 ($200,000 * 40%) = $848,000

The value of the investment after sale of shares will fall by 5000 share out of 40000 shares, this means the fall in value is:

Fall in value of investment = 5,000 / 40,000 × $848,000 Value of investment = $106,000

New Value = $848,000 - $106,000 = $742,000

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )

exaclty 30 degrees celcius is the answer