Pacific Corporation acquired all of the voting stock of Seagate Inc. at an acquisition cost of $500 million on January 1, 2017. Seagates book value at the date of acquisition was $90 million, consisting of $10 million in capital stock, $85 million in retained earnings, and $5 million in treasury stock. Seagates identifiable net assets were revalued as follows: Fair Value Book Value Plant assets, net $10,000,000 $25,000,000 10-year life Brand names 2,000,000 0 Indefinite life Customer lists 1,500,000 0 3-year life During 2017, Seagate reported net income of $6,000,000 and declared and paid dividends of $1,000,000. Seagate does not report any other comprehensive income. The brand names were impaired by $200,000. Pacific reports its investment in Seagate on its own books using the complete equity method.

Required Calculate equity in net income for 2017, reported on Pacifics books.