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On January 1, 2020, Swifty Co. purchased 25,000 shares (a 10% interest) in Elton John Corp....

On January 1, 2020, Swifty Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for $1,270,000. At the time, the book value and the fair value of John’s net assets were $12,800,000.

On July 1, 2021, Swifty paid $3,040,000 for 50,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Swifty owns 30% of John and can exercise significant influence over John’s operating and financial policies. (Any excess fair value is attributed to goodwill.)

John reported the following net income and declared and paid the following dividends.

Net Income

Dividend per Share

Year ended 12/31/20

 $690,000 None

Six months ended 6/30/21

 450,000 None

Six months ended 12/31/21

 788,000 $1.55


Determine the ending balance that Swifty Co. should report as its investment in John Corp. at the end of 2021.

Investment in Elton John Corp. $Enter the investment in Elton John Corp. in dollars
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