A subsidiary is acquired on January 1 , Year 1 for $10 million. The subsidiary's book value at the date of acquisition was $2 million. Following is revaluation information for the subsidiary's identifiable net assets at the date of acquisition: Goodwill recognized in the acquisition was unimpaired in Year 1 , but became fully impaired during Year 2. The subsidiary did not declare any dividends during this period, and reported no other comprehensive income. The subsidiary reported net income as follows: The parent uses the complete equity method to report its investment on its own books. Equity in net income for Year 2, reported on the parent's books, is: a) $(850,000) b) $(4,150,000) c) $(1,850,000 d) 1,650,000