On June 30, 2018, X corp.. issued 150,000 shares of its 20 par value common stock for which it received of Y corp. common stock. The fair value of the common stock issued is equal to the book value of Y corp. net assets. Both corporations continued to operate as separate business, maintaining accounting records with year ending December 31, 2018. Net income from separate company operations and dividend paid were X corp. Y corp. Net Income Six months ended June 30, Y1 750,000 225,000 Six months ended Dec 31, Y1 825,000 375,000 Dividend paid March 25, Y1 950,000 - November 15, Y1 - 300,000 On December 31, Y1, Y corp. held in its merchandise inventory acquired from X corp. on December 21, 2018 for 150,000 which included 45,000 mark-up. In the 2018 consolidated income statement, net income should be reported at a. 2,130,000 b. 1,905,000 c. 1,650,000 d. 1,950,000