Review of pre-consolidation equity method (controlling investment in affiliate, fair value differs from book value) Assume an investee has the following financial statement information for the three years ending December 31, 2013: (At December 31) 2011 2012 2013 Current assets $414,000 $555,400 $570,940 Tangible fixed assets 1,126,000 1,148,600 1,323,460 Intangible assets Total assets 100,000 90,000 80,000 Current liabilities Noncurrent liabilities $1,640,000 $1,794,000 $1,974,400 $200,000 $220,000 $242,000 440,000 484,000 532,400 Common stock 200,000 200,000 200,000 Additional paid-in capital 200,000 200,000 200,000 Retained earnings 600,000 690,000 800,000 Total liabilities and equity $1,640,000 $1,794,000 $1,974,400 (For the year ended December 31) 2011 Revenues Expenses Net income Dividends 2012 2013 $1,700,000 $1,840,000 $1,940,000 1,550,000 1,680,000 1,752,000 $150,000 $160,000 $188,000 $50,000 $70,000 $78,000 Assume that on January 1, 2011, an investor company purchased 100% of the outstanding voting common stock of the investee. On the date of the acquisition, the investee's identifiable net assets had fair values that approximated their historical book values. In addition, the acquisition resulted in no goodwill or bargain purchase gain recognized in the consolidated financial statements of the investor company. Assuming that the investor company uses the equity method to account for its investment in the investee, what is the balance in the "investment in investee" account in the investor company's preconsolidation balance sheet on December 31, 2013? O$900,000 O$1,200,000 O$1,000,000 O$1,974,400