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ABC Co. owns 35% of XYZ Co. At the beginning of the current year, ABC's book value for the investment in XYZ was $1,785,000. XYZ

ABC Co. owns 35% of XYZ Co. At the beginning of the current year, ABC's book value for the investment in XYZ was $1,785,000. XYZ reported $980,000 net income for the current year, and had paid a $200,000 cash dividend to its shareholders during the year. What value should ABC Co. report for the investment in XYZ in its year-end balance sheet?

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