n January 1, 2014, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, nc., for a total of $1,295,000 in cash and other consideration. At the acquisition date, Smashing had ommon stock of $880,000, retained earnings of $430,000, and a noncontrolling interest fair value of 555,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with 20-year life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Inventory Purchases from Corgan $280,000 300,000 Net Income 2014 $330,000 2015 310,000 Dividends $53,000 63,000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2014 and 2015, 50 ercent of the current year purchases remain in Smashing's inventory. a. Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2015. Investment balance 12/31/15