Watkins, Inc

Multiple Choice

Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2012. At that date, Glen owns only three assets and has no liabilities: If Watkins pays $400,000 in cash for Glen, what amount would be represented as the subsidiary's Building in a consolidation at December 31, 2014, assuming the book value of the building at that date is still $200,000?

A) $200,000.
B) $285,000.
C) $260,000.
D) $268,000.
E) $300,000.