Salsa Company's Equity Accounts Consist of Capital Stock of $1,500,000

Salsa Company's equity accounts consist of capital stock of $1,500,000 and retained earnings of $500,000. Prance Company pays $8,000,000 for all the voting stock of Salsa Company. The fair value of Salsa's identifiable net assets is $6,200,000 greater than book value. Salsa uses pushdown accounting to revalue its net assets at the date of acquisition. Eliminating entry (E) on the consolidation working paper includes

A) A $500,000 debit to retained earnings.
B) A $500,000 credit to retained earnings.
C) A $6,000,000 debit to pushdown capital.
D) A $6,700,000 debit to pushdown capital.