In January 2017, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $937,000. This investment gave Domingo the ability to exercise significant influence over Martes, whose balance sheet on that date showed total assets of $4,840,000 with liabilities of $980,000. Any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years. In 2017, Martes reported net income of $250,000. In 2018, Martes reported net income of $313,250. Dividends of $107,000 were declared in each of these two years. What is the equity method balance of Domingos Investment in Martes, Inc., at December 31, 2018?