Effective October 1, year 1, Page Co. acquired 80% of subsidiary Sage Co.'s common stock outstanding. At the date of acquisition, Sage had retained earnings of $2,000,000 and current year net income of $500,000. At the end of year 1, Page has retained earnings of $6,000,000 and currentyear net income of $1,000,000, and Sage has retained earnings of $2,800,000 and a currentyear net income of $800,000. What are the consolidated retained earnings and net income for year 1?

A. Retained earnings, $8,800,000; currentyear net income, $1,800,000.

B. Retained earnings, $8,240,000; currentyear net income, $1,640,000.

C. Retained earnings, $6,240,000; currentyear net income, $1,300,000.

D. Retained earnings, $6,300,000; currentyear net income, $1,300,000.