For the Year Ended 12/31/06, the Adjusted Financial Statements of a Home

For the year ended 12/31/06, the adjusted financial statements of a home office and its branch show net income of $700,000 and $100,000, respectively. At the end of 2005, the home office adjusted the Intracompany Profit Deferred account by debiting it for $40,000, leaving a balance of $10,000. The combined net income for 2006 is

A) $660,000
B) $690,000
C) $700,000
D) $800,000
E) None of the above.