1. On January 1, 2018 Cooper acquires 100% of Dermott and will keep Dermott as a wholly owned subsidiary. The following are the terms of purchase: Cooper pays $1,400,000 cash to Dermott shareholders Cooper issues 100,000 shares of stock (par value $5, fair value $50) Cooper pays $500,000 in fees to accountants and lawyers Cooper pays $100,000 to underwriters to sell the stock Cooper agrees that if Dermott earns at least $800,000 in net income in 2018, Cooper will pay an additional $2,000,000 for the purchase. At January 1, 2018 there is a 60% likelihood that Dermott will earn at least $800,000 in 2018. How much will Cooper debit to its Investment in Dermott at January 1, 2018