Bobby Company accounts for its 25% investment in Tim Corporation under the equity method of accounting. The investment was made on January 1, 20X4, at a cost of $830,000. Tim reported net income of $400,000 for the year ended December 31, 20X4, and paid total dividends of $180,000 during 20X4. In the December 31, 20X4 income statement, what is investment income?

$100,000

$145,000

$155,000

$182,500

$237,500

In the December 31, 20X4 balance sheet, what is the balance in Bobby Company's Investment in Tim?

$610,000

$685,000

$750,000

$885,000

$930,000