12. The post-closing balances of the Retained Earnings ledger accounts of Panich Corporation and its 80%-owned subsidiary, Swenson Company, on February 28, 2006, were as follows (there were no intercompany profits or losses):

Panich Corporation:
Retained earnings $1,600,000 Retained earnings of subsidiary 80,000 Swenson Company:
Retained earnings 460,000 Consolidated retained earnings of Panich Corporation and subsidiary on February 28, 2006, is:

a. $1,600,000.

b. $1,680,000.

c. $1,968,000.

d. $2,060,000.

e. Some other amount.