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Red Design owns 45% of Blue Design. At the start of the year, Red Design accounts for the investment using the equity method for $800,000.

Red Design owns 45% of Blue Design. At the start of the year, Red Design accounts for the investment using the equity method for $800,000. Blue Design has a net loss of $1,700,000 during the year and pays dividends of $32,000. Determine Red Designs investment in Blue Design at the years end.

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