On January 2, 2021, Swiss Company acquired 15% interest in Laco Co. by paying 1,500,000 for 7,500 ordinary shares. On this date, the net assets of Laco Co. totaled 9 million. The investment was classified as a financial asset at fair value through other comprehensive income. The fair values of Laco Co.s identifiable assets and liabilities approximate their book values. On August 1, 2021, Normal received dividends of 4 per share from Laco Co. Fair value of the stocks on December 31, 2021 was 190. Net income reported by Laco for the year ended amounted to 1,500,000. On July 1, 2022, Normal Inc. paid 1 million to purchase 5,000 additional shares of Laco Co. from another shareholder. On this date the fair value of the net assets exceeds carrying value by 500,000 attributable to depreciable asset with estimated remaining life of 5 years. On February 1, 2022, cash dividends of 5 were received while dividends of 6 were received on August 1, 2022. Net income reported for the year ended amounted to 1,500,000 with 800,000 being earned for the second half six months ended December 31, 2022.

1.What amount of investment income should be reported on Normals income statement for the year ended December 31, 2022? 2.What is the ending balance of the investment in associate account as of December 31, 2022?