Parkovash, Incorporated, obtained 100 percent of Salerno Company’s common stock on January 1, 2023, by issuing 9,000 shares of $10 par value common stock. Parkovash’s shares had a $15 per share fair value. On that date, Salerno reported a net book value of $100,000. However, its equipment (with a 5-year remaining life) was undervalued by $5,000 in the company’s accounting records. Also, Salerno had developed computer software with an assessed value of $30,000, although no value had been recorded on Salerno’s books. The computer software had an estimated remaining useful life of 10 years.

The following balances come from the individual accounting records of these two companies as of December 31, 2023:

Items Parkovash Salerno
Revenues $ (600,000) $ (230,000)
Expenses 440,000 120,000
Investment income Not given 0
Dividends declared 80,000 50,000
The following balances come from the individual accounting records of these two companies as of December 31, 2024:

Items Parkovash Salerno
Revenues $ (700,000) $(280,000)
Expenses 460,000 150,000
Investment income Not given 0
Dividends declared 90,000 40,000
Equipment 500,000 300,000
Required:
a. What balance does Parkovash’s Investment in Salerno account show on December 31, 2024, when the equity method is applied?