On January 1, 2014, Portland Company acquired all of Salem Company's voting stock for $14,000,000 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)	$10,000,000	$ 6,000,000
Identifi able intangibles (5 years, straight-line)		4,000,000

Salem's total shareholders' equity at January 1, 2014, was $3,000,000. 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 $500,000. Goodwill impairment for 2017 is $250,000. Portland uses the complete equity method to account for its investment. The December 31, 2017, trial balance for Salem appears below.

	Salem Dr (Cr)
Current assets	$3,000,000
Plant assets, net	24,000,000
Liabilities	(8,500,000)
Capital stock	(3,000,000)
Retained earnings, January 1	(13,000,000)
Sales revenue	(11,000,000)
Cost of goods sold	5,500,000
Operating expense	3,000,000
	$ 0

On Portland's December 31, 2017, trial balance, what is the balance in its Investment in Salem account, using the complete equity method?

$24,700,000

$27,700,000

$26,350,000

$26,850,000