On January 1, 2014, Portland Company acquired all of Salem Company's voting stock for $10,000,000 in cash. Some of Salem's assets and liabilities at the date of purchase had fair values that differed from reported values, as follows: Book value Fair value Buildings and equipment net (20 $9,000,000 $6,000,000 straight- line) Identifi able intangibles (5 years straight line) 3,500,000 Salem's total shareholders' equity at January 1, 2014, was $3,000,000. It is now December 31,2017 (four years later). Salem's retained earnings reflect the accumulation of net income less dividends; there have been no other changes in its retained earnings. Salem does not report any other comprehensive income. Cumulative goodwill impairment to the beginning of 2017 is $750,000. Goodwill impairment for 2017 is $250,000. Portland uses the complete equity method to account for its investment. The December 31, 2017, trial balance for Salem appears below. Salem Dr (Cr) ( Current $1,500,000 Plant assets. net 21,500,000 (7,000,000) (3,500,000) Liabilities Capital stock Retained earnings January 1 Sales revenue Cast of goods sold (11,000,000) (9,000,000) 4,000,000 Operating expenses 3,500,000 $ 0 What is 2017 equity in net income of Salem, reported on Portland's books using the complete equity method? O$700,000 O$ 950,000 O$400,000 O$1,500,000 Check