please answer 1-2. Thanks!

Sadflatte Corporation's stockholder's equity at December 31, 2016 included the following: Prologa Corporation purchased a 30% interest in Sadflatte's common stock from other shareholders on January 1, 2017 for $11, 600, 000. What was the book value of Prologa's investment in Sadflatte? An investor uses the cost method of accounting for its investment in common stock. During the current year, the investor received $25, 000 in dividends, an amount that exceeded the investor's share of the investee company's undistributed income since the investment was acquired. The investor should report dividend income of what amount? Why