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 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.

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

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