On January 1, 2016, GEE Co. purchased 10,000 shares (5%) of the outstanding shares of common stock of JCK Corp., paying $500,000. At that time JCK Corp. book value was $9,500,000. During 2016, JCK reported income of $800,000 and paid dividends of $240,000. At the close of business on 12/31/2016 JCK Fair Value was $10,100,000. Gee considered the JCK Corp shares as available for sale.

On 1/1/2017 GEE Co. acquired an additional 40,000 shares (20%) of JCK Corp for $2,100,000. JCK Corp. had equipment undervalued by $200,000 and a useful life of 10 years. Any other excess fair value from this transaction was attributable to good will. For the first six months of 2017 JCK Corp. recorded net income of $500,000 but did not declare any dividends as it was the procedure of the Company to declare dividends on an annual basis on October 1^st.

On the close of business on 6/30/2017 GEE Co. sold 5,000 shares of JCK Corp. for $300,000.

What is the balance in GEE Co's. Investment in JCK Corp account after GEE Co. had sold the

5,000 shares of JCK Corp on 6/30/2017. To determine this prepare an analysis of the investment

account from 1/1/2016 up to and including the sale of 5,000 shares of JCK Corp to prove your answer.

Prepare the Journal Entry GEE Co. would make to record the sale of 5,000 shares of JCK Corp

at 6/30/2017