On $1/1/2006$ Red, Inc. purchased $100,000$ shares of Blue, Inc $($representing a $40\%$ ownership interest$)$ for $$10$ per share. The book value of Blue Inc. was $$1,500,000.$ In assessing the purchase, Red, Inc. identified that a building owned by Blue, Inc. had a fair value that was $$500,000$ greater than its book value. The building had a remaining useful life of $10$ years. In addition, Red, Inc. also identified a machine that had a fair value that was $$100,000$ higher than its book value, and a $5$ year useful life. Red, Inc. decides to amortize these excesses using the straight$-$line method.

Red, Inc. earns $$5,000,000$ of Net Income in $2006,$ and pays $$500,000$ in dividends. The price of Red, Inc.$\text{'}$s stock is $$25$ at the end of $2006.$

Blue, Inc. earns $$1,000,000$ of Net Income in $2006,$ and pays $$750,000$ in dividends. The price of Blue, Inc.$\text{'}$s stock is $$15$ at the end of $2006.$

What is the value of the "Equity Investment in Blue, Inc." on Red Inc.$\text{'}$s $12/31/2006$ balance sheet?