Exercise 22-22 On January 1, 2017, Pearl Co. purchased 24,000 shares a 10% interest in Elton John Corp. for S1,300 ODO At the time the book alue and the air alue of John's net assets were $12,900,000. On July 1, 2018, Pearl paid $2,890,000 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 $14,100,000. As a result of this transaction, Pearl 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. Net Income $650,000 470,000 776,000 Dividend per Share Year ended 12/31/17 Six months ended 6/30/18 Six months ended 12/31/18 None None $1.50 Determine the ending balance that Pearl Co. should report as its investment in John Corp. at the end of 2018. Investment in Elton John Corp