In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $769,000. This investment gave Domingo the ability to exercise significant influence over Martes, whose balance sheet on that date showed total assets of $4,199,000 with liabilities of $909,000. Any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years.

In 2020, Martes reported net income of $222,000. In 2021, Martes reported net income of $268,250. Dividends of $79,000 were declared in each of these two years. What is the equity method balance of Domingos Investment in Martes, Inc., at December 31, 2021?