Problem 1-6 (LO 1-3)

On January 1, Puckett Company paid $2.22 million for 74,000 shares of Harrisons voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison declared a $2 per share during the year and reported net income of $620,000. What is the balance in the Investment in Harrison account found in Pucketts financial records as of December 31?

Multiple Choice $2,692,000. $2,320,000. $2,408,800. $2,468,000.