$1$ Johannes Inc. acquired $80$ percent of Corner Brook Ltd$.$ common shares on January $1,$ Year $4,$ for $$744,000.$ At that date, the falr value

of the non$-$controlling interest was $$186,000.$ Corner Brook's balance sheet contained the following amounts at the time of the

combination:

During each of the next three years, Corner Brook reported net income of $$120,000$ and paid dividends of $$60,000.$ On January $1,$ Year

$6,$ Johannes sold $8,800$ of the Corner Brook shares for $$260,000$ In cash. Johannes used the equity method in accounting for Its

ownership of Corner Brook.

Required:

$($a$)$ Compute the balance in the investment account reported by Johannes on January $1,$ Year $6,$ before its sale of shares. $($Omlt $ sign

In your response.$)$

Balance prior to sale of shares

$($b$)$ Prepare the entry recorded by Johannes when It sold the Corner Brook shares. $($If no entry is required for a transactlon$/$event$,$

select $"$No journal entry required" In the first account fleld.$)$