tuna co. purchases 25% of Stanley inc. on January 1 of the current year for

L , 7. Tuna Co. purchases 25% of Stanley Inc. on January 1 of the current year for $500,000. Tuna uses the Equity Method of accounting. A building on Stanley's books with a 20 year-life was recorded at the carrying value of $100,000, while the market value was $500,000. During the current year, Stanley reports Net Income of $140,000 while paying dividends of $100,000. Compute both the balance of the Investment Account, and the Equity in Stanley's earnings for the year: Investment Account: Equity in Stanley's Earnings