Big Corp. owns $40\%$ of Little Inc. and accounts for the investment using the equity method. During the year, Little Inc. reports a net loss of $$1,200,000$ and pays total dividends of $$25,000.$

Which of the following describes the change in Big$$s investment in Little Inc. during the year?

The investment decreases by $$490,000$

The investment increases by $$7,500$

The investment decreases by $$1,225,000$

The investment decreases by $$367,500$