Arm, Inc. acquired 15% of Waist Corporation on January 1, 2017, for $410,000 when the book value of Waists net assets was $1,050,000. During 2017, Waist reported net income of $230,000 and paid dividends of $90,000. On January 1, 2017, Arm purchased an additional 25% of Waist for $510,000. Any excess of cost over book value was attributable to goodwill (No amortization). On that same date, Arm changed to the equity method. During 2018, Waist reported net income of $480,000 and paid dividends of $100,000.

What investment income did Arm record from Waist in 2017? show calculations.

What investment income did Arm record from Waist in 2018? show calculations.

What journal entry was made to convert to the equity method?

What was the balance in the Equity Investment account at December 31, 2018? show calculations.