On December 31,20X9,Play Company Acquired 80 Percent of the Common

question 28

Multiple Choice

On December 31,20X9,Play Company acquired 80 percent of the common stock of Station Company.At the time,Play held land with a book value of $100,000 and a fair value of $260,000;Station held land with a book value of $600,000 and fair value of $600,000.At what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?

• A)$550,000
• B)$590,000
• C)$700,000
• D)$860,000