On July 1, 2013, Killeaarn company acquired 84,000 of the outstanding shares of shaun company for $20 per share. This acquisition gave Killearn a 25 percent ownership of Shaun and allowed Killearn to significantly influence the investee's decisions. As of July 1, 2013, the investee had assets with a book value of $5 million and liabilities of $266,400. At the time, Shaun held equipment appraised at $476,000 above book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life Depreciation and amortization are compound using the straight-line method. Killearn applies the equity method for its investment in Shaun. Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $645,000 in 2013, $679.800 in 2014, and $723,000 in 2015. In addition, Killearn sold inventory costing $139,200 to Shaun for $232,000 during 2014. Shaun resold $101,500 of this inventory during 2014 and the remaining $130,500 during 2015. Determine the equity income to be recognized by Killearn during each of these years. Compute Killearn's investment in Shaun company's balance as of December 31, 2015