52905632ALL/423 / BU weer - ASSIGMnl [uue MUNIJ *Exercise 22-22 On January 1, 2017, Ivanhoe Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1,360,000. At the time, the book value and the fair value of John's net assets were $13,400,000. On July 1, 2018, Ivanhoe paid $3,350,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $14,500,000. As a result of this transaction, Ivanhoe owns 30% of John and can exercise significant influence over John's operating and financial policies. (Any excess fair value is attributed to goodwill.) John reported the following net income and declared and paid the following dividends. Dividend per Share None Year ended 12/31/17 Six months ended 6/30/18 Six months ended 12/31/18 Net Income $670,000 480,000 745,000 None $1.65 Determine the ending balance that Ivanhoe Co. should report as its investment in John Corp. at the end of 2018. Investment in Elton John Corp. s Question Attempts of 3 used