Current Attempt in Progress

On January $1,2020,$ Sheffield Co$.$ purchased $25,000$ shares $($a $10\%$ interest$)$ in Elton John Corp. for $$1,450,000.$ At the time, the book

value and the fair value of John's net assets were $$12,000,000.$

On July $1,2021,$ Sheffield paid $$3,330,000$ for $50,000$ additional shares of John common stock, which represented a $20\%$ investment

in John. As a result of this transaction, Sheffield 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.

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

Investment in Elton John Corp. $