Reference no: EM132582197

On January 1, 2021 M.T. Glass purchased the following investments:

1. 7,500 shares (representing 15%) of ZZ Company stock for $98,000

2. 25,000 shares (representing 40%) of AA Company stock for $440,000

M.T. Glass recorded the sale of some of its investments in 2022 as follows:

1. September 1 sold 5,000 shares of the ZZ Company stock for $76,000

2. December 31 sold 3,000 shares of the AA Company  stock for $120,000

AA Company and ZZ Company reported the following information for the years 2021 and 2022:

                                                   AA Company              ZZ Company

Net income in 2021                            $260,000                   $200,000
Total dividends paid in 2021                  $24,000                    $15,000
Market value at Dec 31, 2021                 $27/share                $22/share

Net income in 2022                                 $160,000               $225,000
Total dividends paid in 2022                      $41,000               $5,000
Market value at Dec 31, 2022                  $24/share            $29/share

Question 1: Calculate the balance in the Investment in AA Company account at December 31, 2021.