Exercise 22-22 On January 1, 2017, Pina Co. purchased 27,000 shares (a 10% interest) in Elton John Corp. for $1,430,000. At the time, the book value and the fair value of John's net assets were $12,100,000. On July 1, 2018, Pina paid $2,750,000 for 54,000 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 $13,300,000. As a result of this transaction, Pina 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 $700,000 470,000 737,000 Dividend per Sha Year ended 12/31/17 Six months ended 6/30/18 Six months ended 12/31/18 Determine the ending balance that Pina Co. should report as its investment in John Corp. at the end of 2018. re None None $1.50 Investment in Elton John Corp. s