The following data concerning Procter Company and its 100%-owned subsidiary, Sanford Company. The balance sheets of Procter Company and Sanford Company at December 31, 19x4, are as follows:

Assets Procter Co Sanford Co

Cash $2 100 000 $ 350 000

Inventory 1 400 000 350 000

Long term assets (net) 17 500 000 2 800 000

Investment in Sanford Co 2 800 000 0

Total 23 800 000 3 500 000

Equities

Liabilities $ 7 000 000 $ 1 400 000

Common stock 8 400 000 1 400 000

Retained Earnings 8 400 000 700 000

Total 23 800 000 3 500 000

It should be assumed to be independent of every other question. Where appropriate, the excess of acquisition price over book value should be amortized over 20 years.

Assuming the same data as in question 6, the balance shown on a consolidated balance sheet as of December 31, 19x4, for "Retained Earnings" would be

A. $9,100,000. c. $8,365,000.

B. $8,400,000. D. $8,295,000