On July 1, 2022, Holliston Inc. purchased an investment in Lunar Rocket Limited for $650,000, representing 15% of the book value of Lunar. During the year, Lunar reported net income of $150,000 and paid cash dividends of $100,000. At the end of the year, the fair value of Hollistons investment is $700,000. Required

1.At what amount is the investment reported on Hollistons balance sheet at year-end?

2.What amount of income from investments does Holliston report?

3.Prepare journal entries to record the transactions for Holliston Company.