Irving Company purchased 40% of the voting common stock of Nugent Co. on July 1, 2020 for $2,785,000 when the fair value of Nugent Co's net assets were $6,962,500. When Irving purchased the stock the book value of Nugent was $6,337,500. The difference between the fair value and the book value of Nugent was the due to the fact that the fair value of the equipment exceeded the book! value. The equipment is estimated to have a 20-year remaining useful life. At the end of 2020, Nugent Co. reported $769,500 in net income and paid $123,475 in dividends over the four quarters of the year. What is the book value of the investment on Irving Company's books at December 31, 2020? $3,043,410 $3,055,910 $4,300,455 None of these is correct. $4,306,705