Sun Corporation is a corporate joint venture that is jointly controlled and operated by five investor-ventures, four with 15 percent interests each and one with a 40 percent interest. Each of the five ventures is active in venture management.
Land sales and other important venture decisions require the consent of each venturer. All ventures paid $15 per share for their investments on January 1, 2016, and no changes in ownership interests have occurred since that time. During 2017, Sun reported net income of $500,000 and paid dividends of $100,000. The stockholders' equity of Sun at December 31, 2017, is as follows (in thousands):
Sun Corporation Stockholders' Equity at December 31, 2017
Common stock $10 par, 500,000 shares authorized,
issued, and outstanding ...................................................... $5,000
Additional paid-in capital ..................................................... 2,500
Total paid-in capital ........................................................... 7,500
Retained earnings ............................................................. 1,000
Total stockholders' equity ................................................... $8,500
REQUIRED :
Determine the investment income for 2017 and the investment account balance at December 31, 2017, for the 40 percent venturer and for one of the 15 percent venturers.