Franklin purchases 40 percent of Johnson Company on January 1 for $568,700. Although Franklin did not use it, this acquisition gave Franklin the ability to apply significant influence to Johnsons operating and financing policies. Johnson reports assets on that date of $1,462,000 with liabilities of $546,000. One building with a seven year life is undervalued on Johnsons books by $190,750. Also, Johnsons book value for its trademark (10-year life) is undervalued by $315,000. During the year, Johnson reports net income of $149,000 while declaring dividends of $80,000. What is the Investment in Johnson Company balance (equity method) in Franklins financial records as of December 31?

$572,800.

$632,400.

$596,300.

$583,700.