Exercise 22-22 On January 1, 2017, Skysong Co. purchased 27,000 shares (a 10% interest) in Elton John Corp. for $1,370,000. At the time, the book value and the fair value of Johns net assets were $14,100,000. On July 1, 2018, Skysong paid $2,960,000 for 54,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of Johns identifiable assets net of liabilities was equal to their carrying amount of $15,100,000. As a result of this transaction, Skysong owns 30% of John and can exercise significant influence over Johns 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.

Exercise 22-22 or1,370 00. At the time the book valu e and he fair value of John's net assets were On January 1 2017, Skysong Co. purchased 27,000 shares a 10% interest in Elton John Corp $14,100,000. On July 1, 2018, Skysong paid $2,960,000 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 $15,100,000. As a result of this transaction, Skysong owns 30% of John and can exercise significant influence over John's operating and financial polies. (Any excess fair value is altributed to goodwill.) John reported the following net Income and declared and pald the following dlvidends. Net Income $670,000 450,000 862,000 Dividend per Share Year ended 12/31/17 Six months ended 6/30/18 Six months ended 12/31/18 None None $1.45 Determine the ending balance that Skysong Co. should report as its investment in John Corp. at the end of 2018 Investment In Elton John Corp. Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT