On January 2, 2021, Swiss Company acquired 15% interest in Laco Co. by paying ¥1,500,000 for 7,500 ordinary shares. On t

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On January 2, 2021, Swiss Company acquired 15% interest in Laco
Co. by paying ¥1,500,000 for 7,500 ordinary shares. On this date,
the net assets of Laco Co. totaled ¥9 million. The investment was
classified as a financial asset at fair value through other
comprehensive income. The fair values of Laco Co.’s identifiable
assets and liabilities approximate their book values. On August 1,
2021, Normal received dividends of ¥4 per share from Laco Co. Fair
value of the stocks on December 31, 2021 was ¥190. Net income
reported by Laco for the year ended amounted to ¥1,500,000.

On July 1, 2022, Normal Inc. paid ¥1 million to purchase 5,000
additional shares of Laco Co. from another shareholder. On this
date the fair value of the net assets exceeds carrying value by
¥500,000 attributable to depreciable asset with estimated remaining
life of 5 years. On February 1, 2022, cash dividends of ¥5 were
received while dividends of ¥6 were received on August 1, 2022. Net
income reported for the year ended amounted to ¥1,500,000 with
¥800,000 being earned for the second half six months ended December
31, 2022.
1.What amount of investment income should be reported on
Normal’s income statement for the year ended December 31,
2022?

2.What is the ending balance of the investment in associate account
as of December 31, 2022?