Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paars equipment (10-year life) has a book value of $505,000 but a fair value of $695,000. Kimmel has equipment (10-year life) with a book value of $262,000 but a fair value of $462,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2017, Paar has equipment with a book value of $353,500 but a fair value of $587,700. Kimmel has equipment with a book value of $183,400 but a fair value of $441,500. What is the consolidated balance for the Equipment account as of December 31, 2017?

Multiple Choice

a. $536,900.

b. $736,900.

c. $1,029,200.

d. $676,900.