Pace Corporation Acquired 100 Percent of Spin Company's Common Stock

Multiple Choice

Pace Corporation acquired 100 percent of Spin Company's common stock on January 1,20X9.Balance sheet data for the two companies immediately following the acquisition follows:
At the date of the business combination,the book values of Spin's net assets and liabilities approximated fair value except for inventory,which had a fair value of $60,000,and land,which had a fair value of $50,000.The fair value of land for Pace Corporation was estimated at $80,000 immediately prior to the acquisition.
-Based on the preceding information,what amount of liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination?

A) $615,000
B) $406,000
C) $300,000
D) $265,000