Assume an investor acquired 100% of the voting common stock of an investee on January 1, 2015 in a transaction that qualifies as a business combination. As a result of the acquisition, the investor recognized no goodwill and no bargain purchase gain in the post-acquisition consolidated financial statements (i.e., all of the resulting Acquisition Accounting Premium relates to identifiable net assets). The investor uses the equity method to account for its pre-consolidation investment in the investee. In addition, there are no intercompany transactions between the investor and investee. The following summarized pre-consolidation financial statement information is for the year ending December 31, 2022: Income Statement Revenues Income from investee Expenses Net income Investor Investee $2,678,400 $368,640 169,920 (2,160,000) (187,200) $688,320 $181,440 Retained Earnings Statement Retained earnings, January 1 Net Income Dividends declared Investor Investee $864,000 $43,200 688,320 181,440 (72,000) (43,200) Retained earnings, December 31 $1,480,320 $181,440 Balance Sheet Investment in investee All other assets Investor Investee $339,840 5,518,080 460,800 Total assets Liabilities Common stock & APIC Retained earnings $5,857,920 $460,800 $3,456,000 $178,560 921,600 100,800 1,480,320 181,440 Total liabilities and equity $5,857,920 $460,800 What amount of "expenses" will appear in the consolidated income statement for the year ending December 31, 2022? Select one: a. $2,358,720 b. $2,370,240 c. $2,347,200 x d. $2,160,000 Your answer is incorrect. Parent's expenses Add: Subsidiary's expenses Add: AAP amortization Consolidated expenses $2,160,000 187,200 11,520 $2,358,720