On January 1, 2011, Brooks purchased 15,000 shares of Tom for $490,000, giving Brooks a 10 percent ownership. On January 1, 2012 Brook purchased 10,000 shares giving Brook an additional 20 percent ownership, for which Brook paid 980,000. This latest purchase gave Brook the ability to apply significant influence over Tom. The original purchase was classified as an available-for-sale investment. Any excess of cost over book value acquired for either investment was attributed to goodwill. the book value of Tom was January 1, 2011 was 3,400,000. On January 1, 2013, Brook sold 6,500 shares of Tom for $30.00 per share. Tom reported income for 2013 and 2014 of $240,000 and $370,000 respectively. Tom also paid dividends in 2013 and 2014 of $130,000 and $178,200 respectively.

A.What is the investment balance at December 31, 2013

B.) What are the journal entries to record the sale of the 6,500 shares of Tom

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