Price Company Acquired 75 Percent of the Common Stock of Shandie

Multiple Choice

Price Company acquired 75 percent of the common stock of Shandie Corporation on December 31, 2016. On the date of acquisition, Price held land with a book value of $150,000 and a fair value of $300,000; Shandie held land with a book value of $100,000 and fair value of $500,000. What amount would land be reported in the consolidated balance sheet prepared immediately after the combination?

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