On January 2, 2016 Alan Corporation acquired 35% if the voting stock of Hamlen Company for $4,000,000 in cash. During 2016 Hamlen reported total income of $600,000. Hamlen sold $5,000,000 in merchandise to Alan at a markup of 20% on cost; $312,000 remains in Alan's ending inventory. Compute Alan's equity in net income of Hamlen for 2016 on Alan's books.