On January 1, 2025, Blue Co. purchased 22,000 shares (a 10% interest) in Elton John Corp. for $1,480,000. At the time, the book value and the fair value of John's net assets were $12,100,000. On July 1, 2026, Blue paid $3,340,000 for 44,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Blue owns 30% of John and can exercise significant influence over John's operating and financial policies. John reported the following net income and declared and paid the following dividends. Year ended 12/31/25 Six months ended 6/30/26 Six months ended 12/31/26 Net Income Investment in Elton John Corp. $630,000 490,000 754.000 Dividend per Share SA None Determine the ending balance that Blue Co. should report as its investment in John Corp. at the end of 2026. 4640900 None $1.50

On January 1, 2025, Blue Co. purchased 22,000 shares (a 10% interest) in Elton John Corp. for $1,480,000. At the time, the book value and the fair value of John's net assets were $12,100,000. On July 1, 2026, Blue paid $3,340,000 for 44,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Blue owns 30% of John and can exercise significant influence over John's operating and financia! policies. John reported the following net income and declared and paid the following dividends. Determine the ending balance that Blue Co. should report as its imestment in John Corp. at the end of 2026. Investment in Elton John Corp