Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 68

On May 20, 2015, Montero Co. paid $1,000,000 to acquire 25,000 common shares (10%) of ORD Corp.as a long-term investment. On August 5, 2016, Montero sold one-half of these shares for $625,000. What valuation method should be used to account for this stock investment Prepare entries to record both the acquisition and the sale of these shares.