Springfield purchased 100% of Ottawa on January 1, 2016 for $500,000. On that date, Ottawa's stockholders' equity was $500,000, and the recognized book values of Ottowas individual net assets approximated their fair values. Ottawa had net incomes of $120,000 and $130,000 for 2016 and 2017, respectively. The subsidiary paid dividends amounting to $15,000 in both years. Springfield uses the equity method to account for its pre-consolidation investment in Ottawa. What was the balance in Equity Investment at December 31, 2017?

Select one:

A. $500,000

B. $720,000

C. $750,000

D. $530,000