Run Company had net income of $400,000 and paid dividends of $200,000 during 2012. Run's stockholders' equity on December 31, 2011, and December 31, 2012, is summarized as follows (in thousands):

On January 2, 2012, Nic Corporation purchased 300,000 common shares of Run at $4 per share and also paid $50,000 direct costs of acquiring the investment.REQUIRED: Determine (1) Nic's income from Run for 2012 and (2) the balance of the investment in the Run account at December 31,2012.

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December 31, 2011 December 31, 2012 10% cumulative preferred stock, $100 par Common stock, $1 par Additional paid-in capital Retained earnings Stockholders' equity S 300 1,000 2,200 500 $ 300 1,000 2.200 700 $4.200 $4,000