PayNet Inc. (PayNet) and Shale Ltd. (Shale) had the following balance sheets on July 31, 2022:

PayNet Inc Shale Ltd. Shale Ltd.
(carrying value) (carrying value) (fair value)
Cash $280,000 $36,000 $36,000
Accounts receivable 100,000 40,000 45,000
Inventory 60,000 24,000 20,000
Plant and equipment (net) 200,000 80,000 75,000
Goodwill - 8,000
Trademark - 12,000 24,000
Total assets $640,000 $200,000
Current liabilities $120,000 $50,000 50,000
Bonds payable 330,000 20,000 30,000
Common shares 90,000 80,000
Retained earnings 100,000 50,000
Total liabilities and equity $640,000 $200,000

Assuming that PayNet acquires 70% of Shale on August 1, 2022, for cash of $196,000, what is the amount of the shareholders' equity section on PayNet's consolidated balance sheet at the date of acquisition if the identifiable net assets (INA) method was used?

a. $226,000
b. $190,000
c. $320,000
d. $167,400