Fred Corporation made three investments in Prima during 2011 and 2012, as follows:

Prima's stockholders' equity on January 1, 2011, consisted of 20,000 shares of $10 par common stock and retained earnings of $100,000. Fred's intention was to buy a controlling interest in Prima, so it never considered its investment in Prima as a trading security. Prima stock had a market value of $16.50 on December 31, 2011, and $19.00 on December 31, 2012. Prima had net income of $40,000 and $60,000 in 2011 and 2012, respectively, and paid dividends of $15,000 on May 1 and November 1, 2011 and 2012 ($60,000 total for the two years). Fred Corporation accounts for its investment in Prima using the equity method. It does not amortize differences between investment cost and book value acquired.REQUIRED: Compute the following amounts:1. Fred's income from its investment in Prima for 20112. The balance of Fred's Investment in Prima account at December 31, 20113. Fred's income from its investments in Prima for 20124. The balance of Fred's Investment in Prima account at December 31,2012

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Date Acquired Cost Shares Acquired 3,000 6,000 9,000 July 1, 2011 January 1, 2012 $ 48,750 99,000 October 1, 2012 162,000