Exercise 3 (LO 3) Sale of interest, loss of control. Rob Company purchases a 90% interest in Venus Company for $540,000 on January 1, 2017. Any excess of cost over book value is attributed to equipment, which is being depreciated over 20 years. Both companies end their reporting periods on December 31. Since the investment in Venus Company is consolidated, Rob Company chooses to use the sophisticated equity method to maintain its investment. On December 31, 2020, Rob Company sells 80,000 shares of Venus Company for $700,000. The following stockholders' equity balances of Venus Company are available: January 1, 2017 January 1, 2020 Common stock ($1 par) Retained earnings'. Total equity $ 100,000 $100,000 400,000 900,000 $500,000 $1,000,000 Venus Company earns $100,000 during 2020. REQUIREMENTS On December 31, 2020, in the accounting books and records of Rob Company: 1. Immediately before the sale, what is the balance in the "Investment in Venus Company" account? 2. Prepare the general journal entry to record the sale of the shares of Venus Company 3. Immediately after the sale, what is the balance in the "Investment in Venus Company" account