Assume an investee has the following financial statement information for the three years ending December 31, 2013:

(At December 31)	2011	2012	2013
Current assets	$414,000	$555,400	$570,940
Tangible fixed assets	1,126,000	1,148,600	1,323,460
Intangible assets	100,000	90,000	80,000
Total assets	$1,640,000	$1,794,000	$1,974,400
Current liabilities	$200,000	$220,000	$242,000
Noncurrent liabilities	440,000	484,000	532,400
Common stock	200,000	200,000	200,000
Additional paid-in capital	200,000	200,000	200,000
Retained earnings	600,000	690,000	800,000
Total liabilities and equity	$1,640,000	$1,794,000	$1,974,400

(At December 31)	2011	2012	2013
Revenues	$1,700,000	$1,840,000	$1,940,000
Expenses	1,550,000	1,680,000	1,752,000
Net income	$150,000	$160,000	$188,000
Dividends	$50,000	$70,000	$78,000

Review of pre-consolidation equity method (controlling investment in affiliate, fair value differs from book value) Assume that on January 1, 2011, an investor company purchased 100% of the outstanding voting common stock of the investee. On the date of the acquisition, the investee's identifiable net assets had fair values that approximated their historical book values, except for tangible fixed assets, which had fair value that was $200000 higher than the investee's recorded book value. The tangible fixed assets had a remaining useful life of 10 years. In addition, the acquisition resulted in goodwill in the amount of $400000 recognized in the consolidated financial statements of the investor company. Assuming that the investor company uses the equity method to account for its investment in the investee, what is the balance in the "investment in investee" account in the investor company's pre-consolidation balance sheet on December 31, 2013?

$1,740,000

$1,200,000

$1,800,000

$1,974,400

The correct answer is: $1,740,000

I DONT KNOW HOW TO GET THIS ANDWER????hELP!!