Exercise 22-23 Grouper Corp. was a 30% owner of Monty Company, holding 210,000 shares of Monty's common stock on December 31, 2016. The investment account had the following entries. Investment in Monty 1/1/15 Cost $3,160,000 12/6/15 Dividend received $150,000 12/31/15 Share of income 380,000 12/5/16 Dividend received 230,000 12/31/16 Share of income 520,000 On January 2, 2017, Grouper sold 126,000 shares of Monty for $3,500,000, thereby losing its significant influence. During the year 2017, Monty experienced the following results of operations and paid the following dividends to Grouper. Dividends Paid Monty Income (Loss) to Grouper $290,000 $49,000 2017 At December 31, 2017, the fair value of Monty shares held by Grouper is $1,500,000. This is the first reporting date since the January 2 sale. (b) Compute the carrying amount of the investment in Monty as of December 31, 2017 (prior to any fair value adjustment). Carrying amount (c) Prepare the adjusting entry on December 31, 2017, applying the fair value method to Grouper's long-term investment in Monty Company securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Credit Account Titles and Explanation Debit Date Dec. 31, 2017