Exercise 22-22 On January 1, 2014, Beyonce Co. purchased 27,180 shares (a 10% interest) in Elton John Corp. for $1,464,900. At the time, the book value and the fair value of John's net assets were $12,106,000. On July 1, 2015, Beyonce paid $2,955,700 for 54,360 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 $14,488,000. As a result of this transaction, Beyonce 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. Year ended 12/31/14 Six months ended 6/30/15 Six months ended 12/31/15 Net Income $877,000 465,600 880,100 Dividend per Share None None Determine the ending balance that Beyonce Co. should report as its investment in John Corp. at the end of 2015. Investment in Elton John Corp. $ Click if you would like to Show Work for this question: Open Show Work