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28) On January 1, 2021 Major Company purchased 40% of the outstanding common stock of...

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Accounting

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28) On January 1, 2021 Major Company purchased 40% of the outstanding common stock of Minor, Inc. and used the equity method to account for the investment. During 2021 Minor, Inc. reported net income of $2,000,000 and distributed dividends of $400,000. The ending balance in the Investment in Major Company account at December 31, 2021 was $1,000,000 after applying the equity method during 2021. What was the purchase price Major Company paid for its investment in Minor, Inc

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