19. On January 1, 2024, Peppermill Company acquired 60% of Salty Companys voting stock for $6,610. The fair value of the 40% noncontrolling interest was $3,990. Saltys net assets were reported at amounts approximating book value, but Peppermill determined that Salty had the following previously unreported intangible assets:

Developed technology, fair value $2,000, 5-year life

Favorable leases, fair value $400, 4-year life

Saltys shareholders equity on January 1, 2024 was $3,200. It is now December 31, 2025 (two years later). There are no impairments of identifiable intangibles in 2024 or 2025, but goodwill is impaired by $100 in 2025. Peppermill uses the complete equity method to report its investment in Salty on its own books. Saltys December 31, 2025 trial balance appears below.

	Dr (Cr)
Current assets	$ 2,000
Property and equipment, net	30,000
Liabilities	(27,100)
Capital stock	(1,000)
Retained earnings, January 1	(3,000)
Sales revenue	(40,000)
Cost of goods sold	35,000
Operating expenses	4,100
Total	$ 0

When consolidating the trial balances of Peppermill and Salty at December 31, 2025, eliminating entry (E) credits Investment in Salty by

Select one:

a. $4,000

b. $2,400

c. $3,200

d. $2,600