Lopez Company acquires 100% of the stock of Santiago Corporation on January 1, 2016, for $2,280,000 cash. As of that date Santiago had the following account balances:

	Book Value		Fair value
Cash	$220,000		$220,000
Accounts receivable	360,000		360,000
Inventory	480,000		540,000
Building-net (10 year life)	900,000		720,000
Equipment-net (5 year life)	600,000		750,000
Land	540,000		780,000
Accounts Payable	240,000		240,000
Bonds Payable ($500,000 face value)	1,000,000	(Due 12/31/19)	1,020,000
Common stock	600,000
Additional paid-in capital	360,000
Retained earnings	900,000

In 2016 and 2017, Santiago had net income of $100,000 and 108,000, respectively. In addition, Santiago paid dividends of $27,000 in both years. Inventory is assumed to be sold in 2016. What amount of Santiago's stockholders' equity will be included in the consolidated balance sheet at date of acquisition?

Select one:

A. $-0-

B. $ 960,000

C. $1,933,000

D. $1,860,000