Princeton Company Acquired 75 Percent of the Common Stock of Sheffield

Multiple Choice

Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31,20X9.On the date of acquisition,Princeton held land with a book value of $150,000 and a fair value of $300,000; Sheffield held land with a book value of $100,000 and fair value of $500,000.Using the entity theory,at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?

A) $650,000
B) $500,000
C) $550,000
D) $375,000