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 and their reporting periods on December 31. Sine 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 selly 80,000 shares of Venus company for $700,000. The following stockholder's equity balances of Venus company are available. /////////////////////////////////////////////////////////////// January 1, 2017 January 1, 2020 Common Stock ($1 Par) $100,000 $100,000 Retained Earnings $400,000 $900,000

Total equity========================== $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?