On January 1, 2017, Bridgeport Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for $1,330,000. At the time, the book value and the fair value of John's net assets were $12,300,000.

On July 1, 2018, Bridgeport paid $2,840,000for46,000additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,300,000. As a result of this transaction, Bridgeport owns 30% of John and can exercise significant influence over John's operating and financial policies. (Any excess fair value is attributed to goodwill.)

John reported the following net income and declared and paid the following dividends.

x Your answer is incorrect. Try again. On January 1, 2017, Bridgeport Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for $1,330,000. At the time, the book value and the fair value of John's net assets were $12,300,000. On July 1, 2018, Bridgeport paid $2,840,000 for 46,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,300,000. As a result of this transaction, Bridgeport owns 30% of John and can exercise significant influence over John's operating and financial policies. (Any excess fair value is attributed to goodwill.) John reported the following net income and declared and paid the following dividends. Net Income Dividend per Share Year ended 12/31/17 $770,000 None Six months ended 6/30/18 490,000 None Six months ended 12/31/18 815,000 $1.60 Determine the ending balance that Bridgeport Co. should report as its investment in John Corp. at the end of 2018. Investment in Elton John Corp. 4,430,100 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Question Attempts: 1 of 3 used SAVE FOR LATER SUBMIT ANSWER rch O Ei 1:43 PM 7/5/2020