On June 1, 2019, David Co. purchased 40,000 shares (40%) of the common stock of Logan Corp., paying $800,000. There was no goodwill or other cost allocation associated with the investment. During 2019, Logan reported income of $210,000 and paid dividends of $84,000. On January 2, 2020, David sold 7,500 shares for $115,000.

a) What was the balance in the investment account after the shares had been sold?

b) What was the gain/loss from the transaction?

c) What journal entry did David make to record the transaction?