Pomograte Corporation Bought 75% of Sycamore Company's Common Stock,with a Book

Multiple Choice

Pomograte Corporation bought 75% of Sycamore Company's common stock,with a book value of $900,000,on January 2,2014 for $750,000.The law firm of Dewey,Cheatam and Howe was paid $55,000 to facilitate the purchase.At what amount should Pomograte's Investment in Sycamore account be reported on January 2,2014?

A) $675,000
B) $695,000
C) $750,000
D) $845,000