Franklin purchases $40\%$ of Johnson Company on January $1$ for $$500,000.$ As a result of the purchase, Franklin is considered to have the ability to exercise significant influence over Johnson Company. On the date of acquisition, Johnson reports book values for total assets of $$1,400,000$ and liabilities of $$500,000.$ One building with a seven$-$year remaining life is undervalued on Johnson's books by $$140,000.$ Also, Johnson's book value for its trademark $($with a $10-$year remaining life$)$ is undervalued by $$210,000.$ During the year, Johnson reports net income of $$90,000$ and declared dividends of $$30,000.$

Requirement #$1$

What is the $$Investment in Johnson Company$$ balance reported on Franklin$$s balance sheet as of December $31$st of the year of acquisition?

Requirement #$2$

What is the total impact on Franklin$$s net income as a result of their investment during the year?