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At the beginning of Year One, Current Properties paid $1,000,000 for 25 percent of the shares of Nealy Enterprises. Current immediately begins to exert significant

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At the beginning of Year One, Current Properties paid $1,000,000 for 25 percent of the shares of Nealy Enterprises. Current immediately begins to exert significant influence over the operating decisions of Nealy. Nealy reported earnings of $400,000 during Year One. Nealy paid a total cash dividend of $50,000 during October of Year One, Nealy reported earnings of $440,000 during Year Two Nealy paid dividends of $60,000 during Year Two What is the balance of the Investment in Nealy at the end of Year Two? O $1,000,000 $1,182,500 O $1,087,500 $1,200,000

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