Investment in Equity Securities

Investment in equity securities
On January 1, 2020, Sally Corp. acquired 30% of Wally Ltd.'s common shares for $ 500,000. At that time, Wally had 1 million no par common shares issued and outstanding. During 2020, Wally paid total cash dividends of $ 220,000, and later declared and issued a 5% common stock dividend when the market value was $ 2 per share. Wally's net income for 2020 was $ 480,000. Sally is using the equity method to account for this investment. What should be the balance in Sally's investment account at the end of 2020?

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