The following information relates to noncurrent investments that Fall Corp. placed in trust as required by the underwriter of its bonds:

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Bond sinking fund balance, 12/31/06

$ 450,000

2007 additional investment

90,000

Dividends on investments

15,000

Interest revenue

30,000

Administration costs

5,000

Carrying amount of bonds payable

1,025,000

What amount should Fall report in its December 31, 2007 balance sheet related to its noncurrent investment for bond sinking fund requirements?

  1. $585,000
  2. $580,000
  3. $575,000
  4. $540,000