Calculate income and investment balance for midyear investment Pam Corporation acquired 25 percent of Sun Corporation’s outstanding common stock on October 1, for $300,000. A summary of Sun’s adjusted...

Pam Corporation acquired 25 percent of Sun Corporation’s outstanding common stock on October 1, for $300,000. A summary of Sun’s adjusted trial balances on this date and at December 31 follows (in thousands):

Pam uses the equity method of accounting. No information is available concerning the fair values of Sun’s assets and liabilities.

REQUIRED

1. Determine Pam’s investment income from Sun Corporation for the year ended December 31.

2. Compute the correct balance of Pam’s investment in Sun account at December 31.