On $1/1/20$X$1,$ Bravo Co$.$ purchased $25\%$ of Drano Inc's

$1,000,000$ common shares at $$20$ per share, enabling it to

exercise significant influence over Drano. On $1/1/20$X$1,$ fair

value of Drano's land, building, patent and inventory exceeded

the carrying amounts by $$1,000,000,$$$800,000,600,000$ and

$$40,000,$ respectively. The building has a $20-$year remaining

useful life. Patent has a $10-$year remaining service life. All

inventory was sold during $20$X$1.$ Drano reported net income of

$$10,000,000$ and paid $$240,000$ dividends. Determine the

amount of investment revenue & investment in Drano as of

$12/31/20$X$1$

$$2,465,000$ Investment revenue & $$7,405,000$ Investment in

Drano.

$$2,500,000$ Investment revenue & $$7,440,000$ Investment in

Drano. $($INCORRECT$)$

$$2,360,000$ Investment revenue &$$7,300,000$ Investment in

Drano.

$$2,435,000$ investment revenue & $$7,375,000$ Investment in

Drano.