1. Grant Corporation has owned 40 of the voting stock of Halliday Company for many years, originally purchased at book value and reported using the equity method At the beginning of the current year, the carrying value of the investment is $2,000,000 Halliday reports a loss of $6,000,000 for the year, and the loss is considered other than temporary.

2. Now assume the following year Halliday unexpectedly reports net income of $1,500,000.

   What amount should Grant report as equity in the net loss of Halliday for the current year?