On January 1, 2020, Pronghorn Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for $1,520,000. At the time, the book value and the fair value of Johns net assets were $13,400,000.

On July 1, 2021, Pronghorn paid $2,900,000 for 50,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Pronghorn 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 12/31/20		$720,000		None
Six months ended 6/30/21		450,000		None
Six months ended 12/31/21		801,000		$1.60

Determine the ending balance that Pronghorn Co. should report as its investment in John Corp. at the end of 2021.

Investment in Elton John Corp.