Arom Corporation has 100,000 outstanding shares of no par common stock and 5,000 outstanding shares of $100 par, cumulative, 10% preferred stock. Arom Corporation’s net income for the current year is $300,000, and its stockholders’ equity at the end of the current year is as follows:

10% cumulative preferred stock, $100 par $ 500,000 Common stock, $10 par 1,000,000 Additional paid-in capital 600,000 Retained earnings 400.000 Total stockholders’ equity $2.500.000 Flora Corporation owns 60% of the outstanding common stock of Arom, acquired at book value several years ago. Compute Flora’s investment income for the current year and the balance of its Investment in Arom account at the end of the current year.