On July 1, 2018, Tremen Corporation acquired 35% of the shares of Delany Company. Tremen paid $3,120,000 for the investment, and that amount is exactly equal to 35% of the book value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,000,000 for 2018, and paid $180,000 of dividends each quarter to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of:

Multiple Choice

• $3,666,000.

• $3,407,000.

• $3,295,000.

• $3,169,000.