Problem
On January 1, Puckett Company paid $2.76 million for 69,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $1 per share during the year and reported net income of $596,000. What is the balance in the Investment in Harrison account found in Puckett's financial records as of December 31?