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?

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December 3 October 1 Debits Current assets Plant assets-net Expenses (including cost of goods sold) Dividends (paid in July) $250 750 400 100 $1,500 $ 125 775 300 100 $1,300 Credits Current liabilities Capital stock (no change during the year) Retained earnings January 1 Sales 150 500 250 600 $1,500 100 500 250 450 $1,300