Percy Incacquired 80% of the Outstanding Stock of Sillson Company in in a Business

Multiple Choice

Percy Inc.acquired 80% of the outstanding stock of Sillson Company in a business combination.The book values of Sillson's net assets are equal to the fair values except for the building,whose net book value and fair value are $500,000 and $800,000,respectively.At what amount is the building reported on the consolidated balance sheet?

A) $400,000
B) $500,000
C) $640,000
D) $800,000