On January 1, year A, Pencil Co. purchased 80 percent of the common stock of Sharpener Inc. for $1,680,000 in cash. At that date, S' Stockholders Equity consisted of $1,500,000 of common stock outstanding and retained earnings of $400,000. However, S' Balance Sheet also shows (pre-acquisition) Goodwill of $20k and a Note Payable to P Co. of $10k. $36k of P's acquisition differential is allocable to Equipment with a book value of $450,000 and a remaining life of 10 years. P's Retained Earnings balance at January 1, year A, was $1,200,000. The Net Income and dividend figures for P in year A are $575k and $200k, respectively; Net Income and dividend figures for S in year A are $420k and $100k. Total consolidated net income is

a. $575k b. $747,100 c. $658,100 d. $642,600