E 2-5 Calculate income and investment balance allocation of excess to undervalued assets Dok Company acquired a 30 percent interest in Oak on January 1 for $1,000,000 cash. Assume the cost of the investment equals the fair value of Oak's net assets. Dok assigned the S250,000 fair value over book value of the interest acquired to the following assets: Inventories $50,000 (sold in the current year) Building $100,000 (4-year remaining life at January 1) Goodwill $100,000 During the year Oak reported net income of $400,000 and paid $100,000 dividends. REQUIRED 1. Determine Dok's income from Oak for the year, 2. Determine the December 31 balance of the Investment in Oak account