Franklin purchases 40 percent of Johnson Company on January 1 for $649,400. 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 $1,557,000 with liabilities of $594,000. One building with a seven-year remaining life life is undervalued on Johnson's books by $238,000. Also, Johnson's book value for its trademark (10-year life) is undervalued by $422,500. During the year, Johnson reports net income of $92,000 while declaring dividends of $30,000. What is the Investment in Johnson Company balance (equity method) in Franklin's financial records as of December 31? Multiple Choice $674,200 $680,500 $657300. $643,700