Royce Co Acquired 60% of Park Co What Is the Consolidated Balance of the Equipment Account at December

Royce Co. acquired 60% of Park Co. for $420,000 on December 31, 2014 when Park's book value was $560,000. The Royce stock was not actively traded. On the date of acquisition, Park had equipment (with a ten-year life) that was undervalued in the financial records by $140,000. One year later, the following selected figures were reported by the two companies. Additionally, no dividends have been paid. $\begin{array}{lccr}&\text { Rovee Co. } & \text { Park Co. }\\\hline &\text { Book } & \text { Book } & \text { Fair } \\&\text { Value } & \text { Value } & \text { Value } \\\hline\text { Current assets } & \$ 868,000 & \$ 420,000 & \$ 448,000 \\\text { Equipment } & 364,000 & 280,000 & 400,000 \\\text { Buildings } & 574,000 & 210,000 & 210,000 \\\text { Liabilities } & (546,000) & (168,000) & (168,000 \\\text { Revenues } & (1,260,000) & (560,000) & \\\text { Expenses } & 700,000 & 420,000 & \\\text { Investment income } & \text { Not Given } & &\end{array}$ What is the consolidated balance of the Equipment account at December 31, 2015?

A) $644,400.
B) $784,000.
C) $719,600.
D) $770,000.
E) $775,600.