On January 1, 2014, Portland Company acquired all of Salem Company's voting stock for $17,000,000 in cash. Some of Salem's assets and liabilities at the date of purchase had fair values that differed from reported values, as follows: Book value Fair value Buildings and equipment, net (20 years, straight-line) $12,000,000 $6,000,000 Identifi able intangibles (6 years, straight-line) 12,000,000 Salem's total shareholders' equity at January 1, 2014, was $4,000,000. It is now December 31,2017 (four years later). Salem's retained earnings reflect the accumulation of net income less dividends; there have been no other changes in its retained earnings. Salem does not report any other comprehensive income. Cumulative goodwill impairment to the beginning of 2017 is $1,000,000. Goodwill impairment for 2017 is $500,000. Portland uses the complete equity method to account for its investment. The December 31, 2017, trial balance for Salem appears below. Current assets Plant assets, net Salem Dr (Cr) $2,000,000 25,000,000 Liabilities (9,000,000) Capital stock (2,000,000) Retained earnings, January 1 (13,000,000) Sales revenue (12,000,000) Cost of goods sold 5,000,000 Operating expenses 4,000,000 $ 0 What is 2017 equity in net income of Salem, reported on Portland's books using the complete equity method?