Accounting · Accounting for Associates

On 1 July 20X5, Quantum Innovations Co. acquired a 25% equity interest in Neural Labs Co. for $5 million. This investment provides Quantum with significant influence over Neural Labs. Accordingly, the investment is accounted for using the equity method in accordance with IAS 28 Investments in Associates and Joint Ventures. At the acquisition date, the fair value of Neural Labs' identifiable net assets was $18 million. For the year ended 31 December 20X5, Neural Labs reported a profit after tax of $800,000. On 30 September 20X5, Neural Labs revalued a property, recognizing a gain of $300,000 in other comprehensive income (OCI). On 1 October 20X5, Neural Labs paid a cash dividend of $180,000 to its equity shareholders. What is the carrying amount of the investment in Neural Labs Co. in Quantum Innovations Co.'s consolidated statement of financial position as at 31 December 20X5?