On January 1, 2020 High acquires 100% of Low in a transaction structured as an acquisition, with Low surviving as a wholly owned subsidiary. The following are the terms of the transaction: 1. High pays $2,000,000 cash to Low's shareholders 2. High issues 40,000 shares to Low's shareholders with a par value of $2 a share and a fair value of $60 a 3. High pays outside attorneys $100,000 to draft the purchase agreement 4. High pays outside accountants $60,000 to prepare financial statements for the consolidated entity. 5. High pays its own administrative staff $50,000 for their work on the acquisition 6. High pays underwriters $80,000 to register the shares issued on an exchange. 7. High agrees that if Low earns $900,000 during 2020, High will pay an additional $1,500,000. At acquisition date, probability of that occurring is given at 30% share. How much will High debit to its Investment in Low at January 1, 2020 $4,400,000 $4.930,000 $4,560,000 $4,850,000 $2,000,000