Holly Corporation purchased all of Swiss Corporation's common stock for $970,000 on July 1, 2003. The entire differential was attributed to the equipment. At that date, Swiss had equipment with a book value of $700,000 and a fair value of $800,000. The equipment is depreciated using the straight-line method over a remaining life of 10 years. What amount should be included as equipment (net) on the December 31, 2003, consolidated balance sheet?

a) 690 000

b) 790 000

c) 800 000

d) 710 000