On January 1, 2015, Danner Corp. purchased 100% of the outstanding common stock of Anders Company. On the date of the acquisition, Anders identifiable net assets had fair values that approximated their recorded book values. The acquisition resulted in no goodwill. Danner Corp. uses the cost method to account for its investment in Anders Company.

The following financial statement information is for Anders Company for the year ended December 31, 2016:

	2016	2015
Revenues	$ 85,000	$ 80,000
Expenses	53,000	50,000
Net income	$ 32,000	$ 30,000
Beginning of year retained earnings	$637,000	$617,000
Net income	32,000	30,000
Dividends	(7,000)	(10,000)
End of year retained earnings	$662,000	$637,000
Cash and receivables	$ 237,000	$ 172,000
Property, plant & equipment, net	880,000	900,000
Intangible assets	505,000	520,000
Total assets	$1,622,000	$1,592,000
Current liabilities	$ 170,000	$ 160,000
Noncurrent liabilities	400,000	405,000
Common stock	40,000	40,000
Additional paid in capital	350,000	350,000
Retained earnings	662,000	637,000
Total liabilities and stockholders equity	$1,622,000	$1,592,000

1. What is the balance in the Equity Investment account in Danner Corp.s pre-consolidation balance sheet on December 31, 2016?

a. 1,007,000

b. $1,027,000

c . $1,052,000

d. $1,000,000