Pat Corporation purchased 40 percent of the voting stock of Sue Corporation on July 1, 2011, for $300,000. On that date, Sue's stockholders' equity consisted of capital stock of $500,000, retained earnings of $150,000, and current earnings (just half of 2011) of $50,000. Income is earned proportionately throughout each year. The Investment in Sue account of Pat Corporation and the retained earnings account of Sue Corporation for 2011 through 2014 are summarized as follows (in thousands):

REQUIRED1. Determine the correct amount of the investment in Sue that should appear in Pat's December 31, 2014, balance sheet. Assume any difference between investment cost and book value acquired is due to a building with a 10-year remaining life.2. Prepare any journal entry (entries) on Pat's books to bring the Investment in Sue account up to date on December 31, 2014, assuming that the books have not been closed at year-end2014.

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RETAINED EARNINGS (SUE) Balance January 1, 2011 $150 Dividends November 1, 2011 Dividends November 1, 2012 Dividends November 1, 2013 Dividends November 1, 2014 $40 Earnings 2011 40 100 80 50 Earnings 2012 Earnings 2013 130 50 INVESTMENT IN SUE (PAT) Investment July 1, 2011 40% Income 2011 Income 2012 Income 2013 Income 2014 Dividends 2011 Dividends 2012 Dividends 2013 Dividends 2014 $300 $16 16 20 20 32 52 48