On January $1,$ Year $4,$ Pane Corp. exchanged $150,000$ shares of its $$20$ par value common stock for all of Sky Corp.s common stock. At that date, the fair value of Panes common stock issued was equal to the fair value of the identifiable assets acquired and liabilities assumed. Both corporations continued to operate as separate businesses, maintaining accounting records with years ending December $31.$ In its separate statements, Pane accounts for the investment using the equity method. Information from separate company operations follows:PaneSkyRetained earnings $--12/31/$Yr $3$$$3,200,000$$$925,000$Dividends paid $--3/25/$Yr $4750,000200,000$If consolidated net income was $$800,000,$ what amount of retained earnings should Pane report in its December $31,$ Year $4,$ consolidated balance sheet?A$.$$$3,250,000$B$.$$$3,050,000$C$.$$$4,125,000$D$.$$$4,925,000$