On January 1, 20X9, Company A acquired 80 percent of the common stock and 60 percent of the preferred stock of Company B, for $400,000 and $60,000, respectively. At the time of acquisition, the fair value of the common shares of Company B held by the noncontrolling interest was $100,000. Company B's balance sheet contained the following balances:

Preferred Stock ($5 par value)	$100,000
Common Stock ($10 par value)	200,000
Retained Earnings	300,000
Total Stockholders Equity	$600,000

For the year ended December 31, 20X9, Company B reported net income of $100,000 and paid dividends of $40,000. The preferred stock is cumulative and pays an annual dividend of 10 percent.

5.

Required information

Based on the preceding information, the consolidating entry to prepare the consolidated financial statements for Company A as of December 31, 20X9 will include a credit to Investment in Company BCommon Stock for:

a. 506,000

b. 440,000

c. 400,000

d. 500,000