During its inception, Devon Company purchased land for $100,000 and a building for $180,000. After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary, Regan Company, in exchange for 15,000 shares of Regan's $10 par value stock. Devon uses straight-line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal revealed that the building has a fair value of $200,000.Based on the information provided, what amount would be reported by Devon Company as investment in Regan Company common stock?
A. $312,000
B. $150,000
C. $180,000
D. $330,000
Answer: A
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