Figure:
on January 1, 2010, Cale Corp Kaltop Earned Net Income for 2010 of $126,000 and Paid

Figure:
On January 1, 2010, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts: $$\begin{array} { l r r } & \begin{array} { r } \text { Book } \\\text { Value }\end{array} & \begin{array} { r } \text { Fair } \\\text { Value }\end{array} \\\text { Current assets } & \$ 120,000 & \$ 120,000 \\\text { Land } & 72,000 & 192,000 \\\text { Building (twenty year life) } & 240,000 & 268,000 \\\text { Equipment (ten year life) } & 540,000 & 516,000 \\\text { Current liabilities } & 24,000 & 24,000 \\\text { Long-term liabilities } & 120,000 & 120,000 \\\text { Common stock } & 228,000 & \\\text { Additional paid-in capital } & 384,000 & \\\text { Retained earnings } & 216,000 &\end{array}$$ Kaltop earned net income for 2010 of $126,000 and paid dividends of $48,000 during the year.
-At the end of 2010, the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co. for

A) $124,400.
B) $126,000.
C) $127,000.
D) $76,400.
E) $0.