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Friends Corporation purchases an investment in Brothers, Inc. at a purchase price of $9.8 million cash, representing 40% (at book value) of Brothers. During the

Friends Corporation purchases an investment in Brothers, Inc. at a purchase price of $9.8 million cash, representing 40% (at book value) of Brothers. During the year, Brothers reports net income of $1,267,500 and pays $413,000 of cash dividends. At the end of the year, the market value of Friends' investment is $11.9 million. What amount of equity earnings would be reported by Friends Corporation?

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