On 1/2/X1, Hunter Company was incorporated in the state of Florida and issued 100,000 shares of stock having a $1 par value for $1,000,000 to finance the purchase of a building. During year X1, Hunter Company earned a net income of $200,000 and paid $100,000 of dividends. On 12/31/X1, Hunter's equity has a book value of which of the following amounts?

$1,000,000

$1,100,000

$1,200,000

None of the Above