United, inc.'s unadjusted current assets section and equity section of its december 31, year 1, balance sheet are as follows: current assetscash & n bsp; & n bsp; $ 60,000investment in trading securities (including$300,000 of united, inc. common stock) 400,000trade accounts receivable 340,000inventories 148,000total 948,000equitycommon stock & nbsp; & nbsp; & nbsp; & nbsp; 2,224,000retained earnings (deficit) & nb sp; & nb sp; (224,000)total & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; 2,000,000the investments and inventories are reported at their costs, which approximate fair values. in its year 1 statement of equity, united's total amount of equity at december 31, year 1, isa. $2,000,000b. $1,924,000c. $2,224,000d $1,700,000

James albemarle created a trust fund at the beginning of 2016. the income from this fund will go to his son edward. when edward reaches the age of 25, the principal of the fund will be conveyed to united charities of cleveland. mr. albemarle specified that 75 percent of trustee fees are to be paid from principal. terry jones, cpa, is the trustee. james albemarle transferred cash of $500,000, stocks worth $400,000, and rental property valued at $250,000 to the trustee of this fund. immediately invested cash of $360,000 in bonds issued by the u.s. government. commissions of $7,900 are paid on this transaction. incurred permanent repairs of $9,000 so that the property can be rented. payment is made immediately. received dividends of $8,000. of this amount, $3,000 had been declared prior to the creation of the trust fund. paid insurance expense of $4,000 on the rental property. received rental income of $10,000. paid $8,000 from the trust for trustee services rendered. conveyed cash of $7,000 to edward albemarle.