Refer to Sheppard Corporation.Assume that Sheppard purchased 25% of Meredith's common stock for $62,000.All other facts remain the same.What would be the balance in the investment account as of December 31,2017?

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The balance in the investment account would be $63,000, assuming that Sheppard Corporation uses the equity method for accounting for its investment in Meredith. Under the equity method, the investment is initially recorded at cost ($62,000) and adjusted for Sheppard's share of Meredith's earnings or losses. If Meredith had earnings that increased the investment value by $1,000, the balance would be $63,000.