lluS8 tar. It does not indicate completion. LUrFect tor the work you have Return to question Problem 1-8 (LO 1-3, 1-4) Franklin purchases 40 percent of Johnson Company on January 1 for $616,400. Although Franklin did not use it, this acquisition gave Franklin the ability to apply significant influence to Johnson's operating and financing policies. Johnson reports assets on that date of $1,498,000 with liabilities of $523,000. One building with a seven-year remaining life life is undervalued on Johnson's books by $283,500. Also, Johnson's book value for its trademark (10-year life) is undervalued by $282,500. During the year, Johnson reports net income of $151,000 while declaring dividends of $80,000. What is the Investment in Johnson Company balance (equity method) in Franklin's financial records as of December 31? Multiple Choice