Stock acquisition (fair value is different from book value) The following financial statement information is for an investor company and an investee company on January 1, 2013. On January 1, 2013, the investor company's common stock had a traded market value of $42 per share, and the investee company's common stock had a traded market value of $19 per share. Book Values Fair Values Investor Investee Investor Investee Receivables & inventories $240,000 $120,000 $216,000 $108,000 Land 480,000 240,000 720,000 360,000 Property & equipment 540,000 240,000 600,000 312,000 Trademarks & patents 360,000 192,000 Total assets $1,260,000 $600,000 $1,896,000 $972,000 Liabilities $360,000 $192,000 $432,000 $228,000 Common stock ($1 par) 72,000 40,000 Additional paid-in capital 648,000 344,000 Retained earnings 180,000 24,000 Total liabilities & equity $1,260,000 $600,000 Net assets $900,000 $408,000 $1,464,000 $744,000 Assume that the investor company issued 18,000 new shares of the investor company's common stock in exchange for 100% of the common stock of the investee company, in a transaction that qualifies as a business combination. The financial information presented, above, was prepared immediately before this transaction. Provide the Investor Company's balance (i.e., on the investor's books, before consolidation) for "Investment in Investee" immediately following the acquisition of the investee's common stock: $756,000 $40,000 $384,000 $669,600