Raye Corp. owns $100\%$ of the outstanding common stock of Luke Inc. On January $1,208,$ the book value of Raye's investment was $$500,000.$ During

$208,$ Luke generates net income of $$200,000$ and pays dividends of $$10,000.$ What is the investment balance $($book value$)$ in the subsidiary at the end of

the year?

$$500,000$

$$690,000$

$$650,000$

$$590,000$

None of the above.