On January 3, 2021, Roberts Company purchased 30% of the 100,000 shares of common stock of Thomas Corporation, paying $1,500,000. There was no goodwill or other cost allocation associated with the investment. Roberts has significant influence over Thomas. During 2021, Thomas reported net income of $300,000 and paid dividends of $100,000. On January 4, 2022, Roberts sold 15,000 shares for $800,000.What is the balance in the investment account after the sale of the 15,000 shares?

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Roberts initially purchased 30,000 shares (30% of 100,000) for $1,500,000. With significant influence, the equity method is used. In 2021, Roberts' share of Thomas's net income is $90,000 (30% of $300,000), and its share of dividends is $30,000 (30% of $100,000). The investment account increases by $90,000 and decreases by $30,000, resulting in a balance of $1,560,000 before the sale. After selling 15,000 shares (half of its investment), the balance is reduced by half, resulting in $780,000.

On January 3, 2021, Roberts Company Purchased 30% of the 100,000