Dan Aykroyd Corp. was a 30% owner of Steve Martin Company, holding 212,000 shares of Martins common stock on December 31, 2013. The investment account had the following entries.

Investment in Martin
1/1/12 Cost		$3,145,700	12/6/12 Dividend received		$153,700
12/31/12 Share of income		390,100	12/5/13 Dividend received		195,300
12/31/13 Share of income		510,800

On January 2, 2014, Aykroyd sold 148,400 shares of Martin for $3,459,900, thereby losing its significant influence. During the year 2014, Martin experienced the following results of operations and paid the following dividends to Aykroyd.

		Martin Income (Loss)		Dividends Paid to Aykroyd
2014		$304,300		$51,700

At December 31, 2014, the fair value of Martin shares held by Aykroyd is $1,587,000. This is the first reporting date since the January 2 sale. (b) Compute the carrying amount in Martin as of December 31, 2014 (prior to any fair value adjustment).

(c) Prepare the adjusting entry on December 31, 2014, applying the fair value method to Aykroyds long-term investment in Martin Companys securities.