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On January 1, 2018, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for

On January 1, 2018, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Stong's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Stones books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired. As of December 31, 2018, before preparing the consolidated worksheet, the financial statements appeared as follows:

Pride Inc Strong Corp
Revenues $ 420,000 280,000
Cost Of Goods Sold (196,000) (112,000)
Operating expenses (28,000) (14,000)
Net income $ 196,000 154,000
Retained earnings 1/1/18 420,000 210,000
Net income(above) 196,000 154,000
Dividends paid 0 0
Retained earnings 12/31/18 $ 616,000 364,000
Cash and receivables 294,000 126,000
Inventory 210,000 154,000
Investment in Strong Corp 364,000 0
Equipment(net) 616,000 420,000
Total Assets $ 1,484,000 700,000
Liabilities 588,000 196,000
Common stock 280,000 140,000
Retained earnings 12/31/18 above 616,000 364,000
Total liabilities and stckholder's equity $ 1,484,000 700,000

During 2018, Pride bought inventory for $112,000 and sold it to Strong for $ 140,000. Only half of the inventory purchase price had been remitted to Pride by Strong at year-end. As of December 31, 2018, 60% of these goods remained in the company's possession.

What is the total of consolidated revenues?

A.

$700,000

B.

$560,000

C.

$588,000

D.

$644,000

E.

$840,000

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