On Jan. 1, 2015, White Incorporation acquired 20% of the outstanding ordinary shares of Red, Inc. for $700,000. This investment gave White the ability to exercise significant influence over Red. Reds assets on that date were recorded at $2,000,000 with liabilities of $500,000. Any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years. In 2015, Red reported a net income of $250,000 while it reported a net income of $300,000 in 2016. In 2015 and 2016, Red declared and distributed dividends of $30,000 and $40,000, respectively. What is the balance of Whites Investment in Red, Inc. at December 31, 2016?