On May 20, 2013, Montero Co. paid $ 1,000,000 to acquire 25,000 common shares (10%) of ORD

Question:

On May 20, 2013, Montero Co. paid $ 1,000,000 to acquire 25,000 common shares (10%) of ORD Corp. as a long- term investment. On August 5, 2014, 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.