Oriole Corp. was a 30% owner of waterway Company, holding 216,000 shares of waterway's common stock on December 31, 2016. The investment account had the following entries Investment in Waterway 1/1/15 Cost 12/31/15 Share of income 12/31/16 Share of income $3,170,000 12/6/15 Dividend received $140,000 390,000 12/5/16 Dividend received 510,000 230,000 On January 2, 2017, Oriole sold 108,000 shares of Waterway for $3,590,000, thereby losing its significant influence. During the year 2017, Waterway experienced the following results of operations and paid the following dividends to Oriole Waterway Income (Loss) Dividends Paid to Oriole 2017 $320,000 $51,000 At December 31, 2017, the fair value of Waterway shares held by Oriole is $1,970,000. This is the first reporting date since the January 2 sale (b) Compute the carrying amount of the investment in Waterway as of December 31, 2017 (prior to any fair value adjustment) Carrying amount (c) Prepare the adjusting entry on December 31, 2017, applying the fair value method to Oriole's long-term investment in Waterway Company securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually, If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 (Ctr