A cooperative allocated $5,000 of total allocated equity to patrons for the 2022 fiscal year, $3,000 total allocated equity to patrons for the 2023 fiscal year, and $6,000 total allocated equity to patrons for the 2024 fiscal year, as detailed below. The cooperative uses a revolving fund plan for equity redemption.

Patron	2022 Equity Allocation	2023 Equity Allocation	2024 Equity Allocation
A	$1,000	$1,000	$1,500
B	$1,000	$1,000	$1,200
C	$2,000	$1,000	$2,500
D	$1,000	$0	$800
Equity allocated	$5,000	$3,000	$6,000
Total members' equity	$5,000	$8,000	$

Following 2024 equity allocations, the cooperative board determines that they must retain $10,000 of allocated equity and will redeem allocated equity above that amount. The cooperative has not previously redeemed equity. What will be the amount of 2022 equity redeemed for Patron D in 2025?

Select an answer

a: $720

b: $400

c: $800

d: $1,600

Answer rating: 100% (QA)

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