Flounder Corp.was a 30% owner of Culver Company, holding 210,000 shares of Culver's common stock on December 31, 2016. The investment account had the following entries. 1/1/15 Cost 12/31/15 Share of income 12/31/16 Share of income Investment in Culver $3,130,000 12/6/15 Dividend received $160,000 390,000 12/5/16 Dividend received 240,000 520,000 On January 2, 2017, Flounder sold 147,000 shares of Culver for $3,510,000, thereby losing its significant influence. During the year 2017, Culver experienced the following results of operations and paid the following dividends to Flounder. Culver Income (Loss) $300,000 Dividends Paid to Flounder $49,000 2017 2000 At December 31, 2017, the fair value of Culver shares held by Flounder is $1,640,000. This is the first reporting date since the January 2 sale. (b) Compute the carrying amount of the investment in Culver as of December 31, 2017 (prior to any fair value adjustment). Carrying amount $ (c) Prepare the adjusting entry on December 31, 2017, applying the fair value method to Flounder's long-term investment in Culver Company securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2017 Fair Value Adjustment Unrealized Holding Gain or Loss - Equity