Understanding consolidated balances

Assume an investor acquired 100% of the voting common stock of an investee on January 1, 2015 in a transaction that qualifies as a business combination. As a result of the acquisition, the investor recognized no goodwill and no bargain purchase gain in the post-acquisition consolidated financial statements (i.e., all of the resulting Acquisition Accounting Premium relates to identifiable net assets). The investor uses the equity method to account for its pre-consolidation investment in the investee. In addition, there are no intercompany transactions between the investor and investee. The following summarized pre-consolidation financial statement information is for the year ending December 31, 2022:

Income Statement	Investor	Investee
Revenues	$2,343,600	$322,560
Income from investee	148,680	-
Expenses	(1,890,000)	(163,800)
Net income	$602,280	$158,760

Retained Earnings Statement	Investor	Investee
Retained earnings, January 1	$756,000	$37,800
Net Income	602,280	158,760
Dividends declared	(63,000)	(37,800)
Retained earnings, December 31	$1,295,280	$158,760

Balance Sheet	Investor	Investee
Investment in investee	$297,360	$-
All other assets	4,828,320	403,200
Total assets	$5,125,680	$403,200
Liabilities	$3,024,000	$156,240
Common stock & APIC	806,400	88,200
Retained earnings	1,295,280	158,760
Total liabilities and equity	$5,125,680	$403,200

What amount of expenses will appear in the consolidated income statement for the year ending December 31, 2022?

Select one:

a. $1,890,000

b. $2,063,880

c. $2,073,960

d. $2,053,800