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 preceding information, Regan Company will report
A. additional paid-in capital of $180,000.
B. additional paid-in capital of $162,000.
C. additional paid-in capital of $0.
D. additional paid-in capital of $150,000.
Answer: B
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