On January 1, 2017, Marin Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for $1,340,000. At the time, the book value and the fair value of Johns net assets were $12,000,000.

On January 1, 2017, Marin Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for $1,340,000. At the time, the book value and the fair value of John's net assets were $12,000,000 On July 1, 2018, Marin paid $2,740,000 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 $13,200,000. As a result of this transaction, Marin 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. Dividend per Share Net Income $720,000 450,000 742,000 Year ended 12/31/17 Six months ended 6/30/18 Six months ended 12/31/18 None None $1.50 Determine the ending balance that Marin Co. should report as its investment in John Corp. at the end of 2018. Investment in Elton John Corp