Douglas Company purchased 40% of the outstanding shares of Outrigger Corporation on January 1 at a cost of $675,000. Outrigger Corporation reported net income of $87,000 and paid total dividends of $33,000 for the year. At the end of the year, the Outrigger shares had a current market value of $680,000. After all necessary adjusting entries are made for the year, the balance in Douglas Company's Long-Term Investment account will be:

$675,000.

$680,000.

$696,600.

$729,000.