Son Corporation has 100,000 outstanding shares of $10 par common stock and 5,000 outstanding shares of $100 par, cumulative, 10 percent preferred stock. Son's net income for the year is $300,000, and its stockholders' equity at year-end is as follows:
10% cumulative preferred stock, $100 par ................ $ 500,000
Common stock, $10 par ..................................... 1,000,000
Additional paid-in capital .................................... 600,000
Retained earnings .............................................. 400,000
Total Stockholders' Equity .................................... $2,500,000
Pop Corporation owns 60 percent of the outstanding common stock of Son, acquired at a fair value equal to book value several years ago. Compute Pop's investment income for the year and the balance of its Investment in Son account at the end of the year.