ABC Corporation owns 20% of the outstanding common stock of XYZ Corporation, which has a total of 1,000,000 shares outstanding. The carrying value of ABC Corporation's investment in XYZ Corporation is $2,500,000, and the fair value of the investment is $3,000,000. During the year, XYZ Corporation reports net income of $5,000,000 and pays a dividend of $3 per share. Using the fair value method, what is the amount of income that ABC Corporation will recognize from its investment in XYZ Corporation? Show all calculations.

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