The Following Information Applies to Questions 21-26

Multiple Choice

The following information applies to Questions 21-26
On December 31, 20X8, X Company acquired controlling ownership of Y Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 20X8, X Company provided consulting services to Y Company and has not yet paid for them. There were no other receivables or payables between the companies at December 31, 20X8.

-Based on the information given,what was the fair value of Y Company as a whole at the date of acquisition?

A) $155,000
B) $110,000
C) $115,000
D) $135,000