Kim Company bought 25% of the shares of Phelps, Inc., at the start of 2021. Kim paid $12 million for the shares. Twenty five percent of the book value of Phelps's net assets is $9 million, and the difference of $3 million is due to land that Phelps owns that has appreciated in value. During 2021, Phelps reported net income of $3 million and paid a cash dividend of $2.5 million.

At what amount does Kim carry the Phelps investment on its balance sheet as of December 31, 2021?