On January 2, Year 4, Poplar Ltd. purchased 80% of the outstanding shares of Spruce Ltd. for $1,940,000. At that date, Spruce had common shares of $500,000 and retained earnings of $1,190,000 and accu.

a) $250,000
b) $380,000
c) $1,060,000
d) $1,300,000