On January 1, 2021, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $225,000 cash. On that date, Short's book value and fair value were both $900,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2021, was $86,000. During 2021, Short also paid cash dividends in the amount of $27,000. Required: Compute the amount that would be reported for the investment on American Corporation's financial statements at December 31, 2021.