2. On January 4, 2011, Watts Co. purchased 40,000 shares (40%) of the common stock of Adams Corp., paying $800,000. There was no goodwill or other cost allocation associated with the investment. Watts has significant influence over Adams. During 2011, Adam January 2, 2012, Watts sold 5,000 shares for $125,000. What was the balance in the investment account after the shares had been sold? s reported income of $200,000 and paid divi s of $80,000. On