On January 1, 2015, Pomegranate Company acquired 80% of the voting stock of Starfruit Company for $70,000,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $9,400,000. Starfruit's book value was $11,600,000 at the date of acquisition. Starfruit's assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment (10-year life, straight-line) was overvalued by $13,000,000. Starfruit Company had previously unreported intangible assets, with a market value of $16,000,000 and 5-year life, straight-line, which were capitalized following GAAP. Additional information: Pomegranate uses the complete equity method to account for its investment in Starfruit on its own books. Goodwill recognized in this acquisition was impaired by a total of $3,000,000 in 2015 and 2016, and by $1,000,000 in 2017. It is now December 31, 2017, the accounting year-end. Here is Starfruit Company's trial balance at December 31, 2017: Dr (Cr) Current assets $15,000,000 Plant & equipment, net 89,000,000 Intangibles 1,000,000 Liabilities (86,000,000) Capital stock (500,000) Retained earnings, January 1 (14,000,000) Acumulated Ath other comprehensive income, January 1 (250,000) Dividends Sales revenue (13,000,000) 300,000 5,500,000 Cost of goods sold Operating expenses Other comprehensive income 3,000,000 (50,000) $ 0 On the 2017 consolidation working paper, eliminating entry (R) reduces the Investment in Starfruit by O$ 3,600,000 O$64,800,000 O$54,980,000 O$81,000,000