Pearson Inc. reports net income earnings of $1,170,000 while paying $120,000 in cash dividends this year. Santa Fe Co. earns $300,000 in net income and distributes $30,000 in dividends. Pearson has held a 70% interest in Santa Fe for several years, an investment with an acquisition date fair value equal to the book value of its underlying net assets. Pearson uses the initial value method to account for these shares. On January 1 of the current year, Santa Fe acquired in the open market $150,000 of Pearsons 8% bonds. The bonds had originally been issued several years ago for 92, reflecting a 10% effective interest rate. On the date of purchase, the book value of the bonds payable was $144,900. Santa Fe paid $139,800 based on a 12% effective interest rate over the remaining life of the bonds. What is consolidated net income for this year?

A. $1,476,480

B. $1,451,814

C. $1,481,814

D. $1,500,774

E. $1,171,614

F. $1,497,480