Kim Company bought 40% of the shares of Phelps, Inc., at the start of 2016. Kim paid $18 million for the shares. Forty percent of the book value of Phelpss net assets is $12 million, and the difference of $6 million is due to land that Phelps owns that has appreciated in value. During 2016, Phelps reported net income of $3 million and paid a cash dividend of $2.6 million.

What amount does Kim carry the Phelps investment on its balance sheet as of December 31, 2016?