Blair & rosen, inc. (b& r) is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of its clients. a client who contacted b& r this past week has a maximum of $50,000 to invest. b& r’s investment advisor decides to recommend a portfolio consisting of two investment funds: an internet fund and a blue chip fund. the internet fund has a projected annual return of 12%, whereas the blue chip fund has a projected annual return of 9%.

Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?