Item 23

On July 1, 2021, Tremen Corporation acquired 45% of the shares of Delany Company. Tremen paid $3,140,000 for the investment, and that amount is exactly equal to 45% of the book value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,500,000 for 2021, and paid $180,000 of dividends each quarter to its shareholders. After all closing entries are made for the year ended December 31, 2021, Tremen's "Investment in Delany Company" account would have a balance of:

Multiple Choice

• $3,477,500.

• $3,315,500.

• $3,846,500.

• $3,734,000.