26. On January 1, 2021, Gooch Company acquires 80% of the outstanding common stock of House Inc., for a purchase price of $12,400,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $3,100,000. The book value of the House's stockholders' equity on the date of acquisition is $10,000,000 and its fair value of net assets is $11,000,000. The acquisition-date acquisition accounting premium (AAP) is allocated $600,000 to equipment with a remaining useful life of 10 years, and $250,000 to a patent with a remaining useful life of 5 years. Assume that during the year ended December 31, 2021. House reports net income of $950,000 and pays dividends of $150,000. Gooch uses the equity method to account for its investment in House, Determine the December 31, 2021 ending balance in Gooch Company's pre- consolidation equity investment account. a. $12.400.000 b. $12.952,000 c. $13,040,000 d. $13,090.000