On January 1, 2017, Culver Co. purchased 26,000 shares (a 10% interest) in Elton John Corp. for $1,380,000. At the time, the book value and the fair value of Johns net assets were $14,200,000. On July 1, 2018, Culver paid $3,000,000 for 52,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of Johns identifiable assets net of liabilities was equal to their carrying amount of $15,500,000. As a result of this transaction, Culver owns 30% of John and can exercise significant influence over Johns 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		$750,000		None
Six months ended 6/30/18		480,000		None
Six months ended 12/31/18		807,000		$1.65

Determine the ending balance that Culver Co. should report as its investment in John Corp. at the end of 2018.

Investment in Elton John Corp.

$