$16]($Note: This Problem based on Excercise $2-10)$: Arcain Corporation acquired $25$ percent of Tesla Corporation's

outstanding common stock on October $1,$ for $$350,000.$ Arcain uses the equity method of accounting.

A summary of Tesla's adjusted trial balances on this date and at December $31$ follows $($Note: Assume that no

goodwill or unamortized excess exist$)$

REQUIRED

A$]$ Determine Arcain's investment income from Tesla Corporation for the year ended December $31.$

B$]$ Compute the correct balance of Arcain's investment in Tesla account at December $31.$

a$]$