At the 20X5 annual meeting for Jasmine€™s shareholders, Curry nominated seven directors for Jasmine€™s 12- person board of directors. After some negotiation, five of Curry€™s nominees were accepted onto the board. During fiscal year 20X6 the following occurred:
1. Curry shifted a substantial amount of business to Jasmine. Jasmine became the major supplier of one of Curry€™s raw materials and had sales totaling $ 7,000,000 to Curry. Of that total, $ 1,000,000 was in Curry€™s raw materials inventory at year-end. The other $ 6,000,000 had been utilized in finished goods, of which one- third was still in inventory on March 31, 20X6.
2. Curry began selling some products to Cinnamon Corp., a wholly owned subsidiary of Jasmine. Fiscal 20X6 sales totaled $ 2,500,000, all within the last two months of the year. At year-end, 60% of the sales were still in Cinnamon€™s inventory.
3. Operating results for fiscal 20X6 were reported as follows:

Required
Using the information above and in P6- 9, prepare a schedule(s) in which you:
1. Compute the amount of investment income that Curry should recognize in fiscal 20X6 from its investment in Jasmine.
2. Compute the balance of Curry€™s investment account for its investment in Jasmine at March 31,20X6.

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Curry Jasmine $20,000,000 Sales Cost of sales $80,000,000 (56,000,000)(12,000,000) 24,000,000 (6,000,000) 8,000,000 (4,000,000) Ner mo 100,000 3 10000 Operating expenses Income tax expense Net income and comprehensive income $10,800,000 2,400,000