Frankfort Corporation Purchases an Investment in Bradley, Inc

Frankfort Corporation purchases an investment in Bradley, Inc. at a purchase price of $9.8 million cash, representing 40% (at book value) of Bradley. During the year, Bradley reports net income of $1,680,000 and pays $413,000 of cash dividends. At the end of the year, the market value of Frankfort's investment is $11.9 million.
What amount of equity earnings would be reported by Frankfort Corporation?

A) $ 165,000
B) $ 672,000
C) $ 507,000
D) $1,267,000
E) None of the above