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:ItemPaceCorporationSpinCompanyCash $30,000 $25,000 Accounts Receivable 80,000 40,000 Inventory 150,000 55,000 Land 65,000 40,000 Buildings and Equipment 260,000 160,000 Less: Accumulated Depreciation (120,000) (50,000) Investment in Spin Company Stock 150,000 Total Assets $615,000 $270,000 Accounts Payable $45,000 $33,000 Taxes Payable 20,000 8,000 Bonds Payable 200,000 100,000 Common Stock 50,000 20,000 Retained Earnings 300,000 109,000 Total Liabilities and
Stockholders' Equity $615,000 $270,000 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, at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination?
A. $120,000
B. $115,000
C. $130,000
D. $105,000
Answer: B
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