Pidris Company acquired 90% of Sunny inc. on January 31, 2015 in exchange for cash. The book value of Sunny's individual assets and liabilities approximated their acquisition-date fair values.

On the date of acquistion, Sunny reported the following

Cash	350,000	Current Liabilities	120,000
Inventory	100,000
Plant Assets(net)	320,000	Common Stock	100,000
Property	500,000	Retained Earnings	1,050,000
Total Assets	1,270,000	Total Liabilities&Equity	1,270,000

During the year Sunny inc. reported $310,000 in net income and declared $15,000 in dividends. Pidris Company reported $520,000 in net income and declared $25,000 in dividends. Pridris accounts for their investment using the equity method.

Required:

1. What journal entry will Pidris make on the date of acquistion to record the investment in Sunny inc.?

2. What is Pidris's balance in "investment in Sunny Inc." Prior to consolidation on December 31,2015 ?