Kim Company bought 35% of the shares of Phelps, Inc., at the start of 2021. Kim paid $14 million for the shares. Thirty five percent of the book value of Phelpss net assets is $10 million, and the difference of $4 million is due to land that Phelps owns that has appreciated in value. During 2021, Phelps reported net income of $2 million and paid a cash dividend of $1.2 million.

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