Pepper Company Acquired 60 Percent of the Common Stock of Safton

Multiple Choice

Pepper Company acquired 60 percent of the common stock of Safton Corporation on December 31,20X9.On the date of acquisition,Pepper held land with a book value of $200,000 and a fair value of $350,000;Safton held land with a book value of $300,000 and fair value of $300,000.At what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?

A) $290,000
B) $500,000
C) $590,000
D) $650,000