On January 1, 2024, Jackie Corporation purchased 30% of the voting common stock of Rob Company, paying $2,000,000. Jackie properly accounts for this investment using the equity method. At the time of the investment, Rob’s total stockholders’ equity was $3,000,000. Jackie gathered the following information about Rob’s assets and liabilities whose book values and fair values differed:
Book ValueFair ValueBuildings (15-year life)$ 1,000,000$ 1,500,000Equipment (5-year life)2,500,0003,000,000Franchises (10-year life)$ 0$ 500,000
Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Rob reported net income of $300,000 for 2024, and paid dividends of $100,000 during that year.
What is the balance in Jackie’s Investment in Rob Company account at December 31, 2024?