On January 1, 2015, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $48,200,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $3,100,000. Starfruit's book value was $6,800,000 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 $14,500,000. Starfruit Company had previously unreported intangible assets, with a market value of $18,400,000 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 $1,000,000 in 2015 and 2016, and by $250,000 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	$14,000,000
Plant & equipment, net	93,000,000
Intangibles	1,000,000
Liabilities	(90,000,000)
Capital stock	(500,000)
Retained earnings, January 1	(15,000,000)
Acumulated other comprehensive income, January 1	(250,000)
Dividends	300,000
Sales revenue	(11,000,000)
Cost of goods sold	5,500,000
Operating expenses	3,000,000
Other comprehensive income	(50,000)
	$ 0

On the 2017 consolidation working paper, eliminating entry (R) reduces the Investment in Starfruit by

A. $ 3,600,000

B. $64,800,000

C. $37,116,000

D. $81,000,000