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Black Lung Mining Company purchases an investment in Erosion Mining Company at a purchase price of $3 million cash, representing 30% of the book value

Black Lung Mining Company purchases an investment in Erosion Mining Company at a purchase price of $3 million cash, representing 30% of the book value of Erosion Mining. During the year, Erosion Mining reports net income of $400,000 and pays cash dividends of $100,000. What amount does Black Lung report on its year-end balance sheet for its investment in Erosion Mining?

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