(i) Palm Corporation paid $6,000,000 to acquire all of the stock of Sequoia Company. The book value of the net assets of Sequoia was $2,000,000. All of Sequoia's assets and liabilities are carried at amounts approximating fair value, except that land is overvalued by $600,000. Which of the following is TRUE concerning the consolidation working paper eliminating entries at the date of acquisition?

a. Working paper eliminating entry E reduces Investment in Sequoia by $4,000,000

b. Working paper eliminating entry R increases Goodwill by $4,600,000

c. Working paper eliminating entry R increases Land by $600,000

d. Working paper eliminating entry R increases Investment in Sequoia by $4,000,000