What is the balance in the investment account after the sale of the 10,000 shares?

Question

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The investment account had 40,000 shares at $37.50 per share, giving a total value of $1,500,000 (40,000 x $37.50 = $1,500,000). After selling 10,000 shares for $45 per share, the investment account would have $450,000 (10,000 x $45 = $450,000) in cash. The remaining 30,000 shares would be worth $1,125,000 (30,000 x $37.50 = $1,125,000). Adding the cash from the sale to the total value of the remaining shares gives a new balance of $1,575,000 ($450,000 + $1,125,000 = $1,575,000). Dividing this new balance by the total number of shares (40,000) gives a new per-share value of $39.375 ($1,575,000 / 40,000 = $39.375). Multiplying this new per-share value by the remaining 30,000 shares gives a value of $1,181,250 (30,000 x $39.375 = $1,181,250). Adding the cash from the sale to this gives a final balance of $1,631,250 ($1,181,250 + $450,000 = $1,631,250). However, none of the answer choices exactly match this amount. The closest answer is C, $453,000, which is off by $178,250.

What Is the Balance in the Investment Account After the Sale