On January 15, 2014, National Star Inc. purchased 140,000 shares of Krypton Labs Inc. directly from one of the founders for a price of $65 per share. Krypton Labs has 400,000 shares outstanding, including the National Star shares. On July 2, 2014, Krypton paid $406,000 in total dividends to its shareholders. On December 31, 2014, Krypton reported a net income of $1,259,000 for the year. National Star Inc. uses the equity method in accounting for its investment in Krypton Labs.

Provide the National Star Inc. journal entries for the transactions involving its investment in Krypton Labs Inc. during 2014.

Determine the December 31, 2014, balance of Investment in Krypton Labs Inc. Stock.