A subsidiary is acquired on January 1, 2015 for $10 million. The subsidiarys book value at the date of acquisition was $2 million. Following is revaluation information for the subsidiarys identifiable net assets at the date of acquisition: Fair Value Book Value Inventories $ (200,000) FIFO Identifiable intangibles 5,000,000 Straight-line, 5 years Long-term debt 300,000 Straight-line, 2 years Goodwill recognized in the acquisition was unimpaired in 2015. The subsidiary did not declare any dividends during this period, and reported no other comprehensive income. The subsidiary reported net income as follows: Year Net Income 2015 $1,500,000 The parent uses the complete equity method to report its investment on its own books. Equity in net income for 2015, reported on the parents books, is: a. $1,500,000 b. $1,050,000 c. $ 150,000 d. $ 850,000