Willkom Corporation bought 100 percent of Szabo, Inc., on January 1, 2009, at a price in excess ot the subsidiary s fair value. On that date, Willkom’s equipment (10-year life) has a book value of $300,000 but a fair value of $400,000. Szabo has equipment (10-year life) with a book value of $200,000 but a fair value of $300,000. Willkom uses the partial equity method to record its invest¬ ment in Szabo. On December 31,2011, Willkom has equipment with a book value of $210,000 but a fair value of $330,000. Szabo has equipment with a book value of $140,000 but a fair value of $270,000. What is the consolidated balance for the Equipment account as of December 31, 2011?

a. $600,000. LO1

b. $490,000.

c. $480,000.

d. $420,000.