Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2016....
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Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2016. Kim paid $20 million for the shares. Thirty percent of the book value of Phelpss net assets is $15 million, and the difference of $5 million is due to land that Phelps owns that has appreciated in value. During 2016, Phelps reported net income of $4 million and paid a cash dividend of $3.5 million.
What amount does Kim carry the Phelps investment on its balance sheet as of December 31, 2016? (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
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