Help

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 $$594,000.$ One building with a $7-$year remaining life is undervalued on Johnson's books by $$238,000.$ Also, Johnson's book valu its trademark $(10-$year remaining 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

Multiple Choice

$$643,700$

$$680\mathrm{.}500$

$$674,200$

$$657,300$