Paris, Inc. holds 100 percent of the common stock of Stockholm Company, an investment acquired for $520,000. Immediately following the combination, Paris's net assets have a book value of $900,000 and a fair value of $1,050,000. The book and fair value of Stockholm's net assets on the date of combination are $350,000 and $425,000, respectively. Immediately following the combination, a consolidated balance sheet is prepared.Based on the information given above, at what amount will Paris's investment in Stockholm stock be reported in a consolidated balance?

A. $170,000
B. $0
C. $95,000
D. $520,000


Answer: B

Business

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