Team Tennis owns 40% of Best Racquets, Inc. and accounts for the investment using the equity method. During the year, Best Racquets reports a net loss of $2,400,000 and pays total dividends of $50,000. Which of the following describes the change in Team Tenniss investment in Best Racquets during the year?

Select one:

A. The investment decreases by $980,000

B. The investment decreases by $2,450,000

C. The investment increases by $50,000

D. The investment decreases by $735,000