On July 1, 2020, Amy paid $1,920,000 for 60,000 shares of Sara's voting common stock which represents a 45% investment. A building owned by Sara, with a 10 year life, was over valued by $100,000 and a trademark with a life of 5 years was undervalued by $50,000. Sara distributed a dividend of $3.00 per share during 2018 and reported net income of $800,000. WHAT WAS THE BALANCE IN THE INVESTMENT IN Sara's ACCOUNT DECEMBER 31, 2018 AND WHAT IS THE EQUITY INCOME TO BE REPORTED BY Amy?