Sheffield Corp. was a 30% owner of Tamarisk Company, holding 216,000 shares of Tamarisk's common stock on December 31, 2016. The investment account had the following entries.

Investment in Tamarisk

1/1/15 Cost $3,230,000

12/6/15 Dividend received $160,000

12/31/15 Share of income 380,000

12/5/16 Dividend received 250,000

12/31/16 Share of income490,000

On January 2, 2017, Sheffield sold108,000shares of Tamarisk for $3,470,000, thereby losing its significant influence. During the year 2017, Tamarisk experienced the following results of operations and paid the following dividends to Sheffield.

Tamarisk Income (Loss) Dividends Paid to Sheffield

2017 $320,000 $52,000

At December 31, 2017, the fair value of Tamarisk shares held by Sheffield is $1,980,000. This is the first reporting date since the January 2 sale.

(b) Compute the carrying amount of the investment in Tamarisk as of December 31, 2017 (prior to any fair value adjustment).