Trekkers Footwear purchased a piece of machinery on January 1, 2006 at a cost of $2.3 million, and the machinery depreciates annually at an amount of $230,000 over 10 years. Its market value as of December 31, 2008 is $1.75 million. The company's accountant is preparing its financial statement for the fiscal year ending December 31, 2008. 

What amount of the asset should be recognized on the balance sheet ?