REFERENCE: Ref.02_05 Carnes Has the Following Account Balances as of May 1,2000

Multiple Choice

REFERENCE: Ref.02_05
Carnes has the following account balances as of May 1,2000 before a pooling of interests transaction takes place. The fair value of Carnes' Land and Buildings are $650,000 and $550,000,respectively.On May 1,2000,Riley Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Carnes' common stock.
-On May 1,2000,what value is assigned to the investment account?

A) $300,000.
B) $750,000.
C) $800,000.
D) $1,100,000.
E) $1,300,000.