Jack Corporation purchased a 21% interest in Jill Corporation for $1,860,000 on January 1, 2021. Jack can significantly influence Jill. On December 10, 2021, Jill declared and paid $1.1 million in dividends. Jill reported a net loss of $7.5 million for the year. What amount of loss should Jack report in its income statement for 2021 relative to its investment in Jill?

1. $1,860,000.

2.$1,575,000.

3.$1,100,000.

4.$1,744,500.