On January 1, 2019, Triple A Company acquired Bodyguard Companys outstanding common stock for $842,000 in cash. As of that date the following information was acquired from Bodyguard, the subsidiary of Triple A:

Building (12-year life) was undervalued on its balance sheet by $72,000

Equipment (10-year life) was undervalued by $10,000

Licensing agreement (20-year life) unrecorded, assessed at $40,000

Book value as at January 1, 2019 was $720,000

Net income reported during 2019 was $100,000

Dividends paid in 2019 $30,000

Earnings by Bodyguard (subsidiary) in 2020 $120,000

Dividends distributed by Bodyguard in 2020 $20,000

As of December 31, 2021Triple A and Bodyguard reported the following for the year:

	Triple A December 31, 2021		Bodyguard December 31, 2021
	Debit	Credit	Debit	Credit
Buildings	$1,540,000		$460,000
Cash and receivables	50,000		90,000
Common stock		$900,000		$400,000
Dividends paid	70,000		10,000
Equipment	280,000		200,000
Cost of goods sold	500,000		120,000
Depreciation expense	100,000		60,000
Inventory	280,000		260,000
Land	330,000		250,000
Liabilities		480,000		260,000
Retained earnings 1/1/21		1,360,000		490,000
Revenues		900,000		300,000

Required:

If Triple A applies the equity method, what is its investment account balance as of December 31, 2021?

Div will deducted

b. If Triple A applies the initial value method, what is its investment account balance as of

dividend will added