Please help with the following problem. This is an Equity problem right?

In January 2017, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes Inc. for $700,000. This investment gave Domingo the ability to exercise significant influence over Martes, whose balance sheet on that date showed total assets of $3,900,000 with liabilities of $900,000. Any excess of cost over book value of investment was attributed to a patent having a remai ining useful life of 10 years. In 2017, Martes reported net income of $170,000. In 2018, Martes reported net income of $210,000. Dividends of $70,000 were declared in each of these two years. Calculate the balance of Domingo's Investment in Martes, Inc., at December 31, 2018