On April 1, 2016, Mumford Company sold equipment to its wholly owned subsidiary, Stapp Corporation, for $306,000. At the time of the transfer, the asset had an original cost (to Mumford) of $350,000 and accumulated depreciation of $110,000. The equipment has a ten-year estimated remaining life. Stapp reported net income of $500,000, $580,000 and $620,000 in 2016, 2017, and 2018, respectively. Mumford received dividends from Stapp of $180,000, $210,000 and $240,000 for 2016, 2017, and 2018, respectively.

Assume that Mumford uses the cost method to account for its investment in Stapp. Compute the [ADJ] consolidating entry necessary for 2017.

Select one:

A. $320,000

B. $326,600

C. $258,950

D. $254,000