On Portland's December 31, 2014 trial balance, what is the balance in its Investment in Salem account at December 31, 2014, using the complete equity method?
a. $22,800,000
b. $23,200,000
c. $23,600,000
d. $27,600,000
Use the following information to answer questions l - 4 below:
On January l, 2011, Portland Company acquired all of Salem Company's voting stock for $16,000,000 in cash. Some of Salem's assets and liabilities at the date of purchase had fair values that differed from reported values, as follows:

Salem's total stockholders' equity at January 1, 2011, was $4,000,000. It is now December 31, 2014 (four years later). Salem's retained earnings reflect the accumulation of income less dividends; there have been no other changes in its retained earnings. Cumulative goodwill impairment to the beginning of 2014 is $2,000,000. Goodwill impairment for 2014 is $500,000. Portland uses the complete equity method to account for its investment. The December 31,2014, trial balance for Salem appears below.

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Book value Fair value Buildings and equipment, net (20 years, straight-line). . . . . . . . . … … . Identifiable intangibles (5 years, straight-line)**... $11,000,000 0 $3,000,000 10,000,000 Salem Dr (Cr) . 2,500,000 28,000,000 Current assets Liabilities. . 10,000,000) (2,000,000) (14,000,000) 8,000,000 3,500,000 Operating expenses.