Franklin purchases 40 percent of Johnson Company on January 1 for $593,600. Although Franklin did not use it, this acquisition gave Franklin the ability to apply significant influence to Johnson's operating and financing policies. Johnson reports assets on that date of $1,589,000 with liabilities of $592,000. One building with a seven-year remaining life is undervalued on Johnson's books by $234,500. Also, Johnson's book value for its trademark (10-year remaining life) is undervalued by $252,500. During the year, Johnson reports net income of $172,000 while declaring dividends of $110,000. What is the Investment in Johnson Company balance (equity method) in Franklin's financial records as of December 31? Multiple Choice $594,900. $663,700. $608,300. Multiple Choice $594,900. $663,700. $608,300. $618,400