______ Pullox Owns 100% of Sullox's Outstanding Common Stock

______ Pullox owns 100% of Sullox's outstanding common stock. For 2006, Sullox reported net income of $400,000. In addition to its 45,000 shares of common stock owned by Pullox, Sullox has outstanding warrants to purchase 15,000 shares of its common stock. These warrants were outstanding during all of 2006, and 10,000 shares were assumed to be repurchased under the treasury stock method for earnings per share purposes. Pullox reported net income of $1,000,000 from its own separate operations, exclusive of any earnings or dividends of Sullox.
What is the consolidated net income?

A) $1,000,000
B) $1,300,000
C) $1,340,000
D) $1,360,000
E) $1,400,000