The Evanston Company acquired a 25% interest in Straw Enterprises for $8,000,000 and appropriately applied the equity method. During the first year, Straw reported net income of $1,060,000 and paid cash dividends totaling $100,000.

What amount will The Evanston Company report regarding its Straw investment at the end of the first year on its Income Statement?

Investment earnings totaling $265,000

Dividend income totaling $25,000

Investment earnings totaling $250,000

Net investment earnings totaling $225,000