Royce Co Acquired 60% of Park Co

Multiple Choice

Royce Co. acquired 60% of Park Co. for $420,000 on December 31, 2010 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.
-What is consolidated net income for 2011 attributable to Royce's controlling interest?

A) $686,000.
B) $560,000.
C) $644,000.
D) $635,600.
E) $691,600.