10.On January 1, 2006, Peterson Company purchased 16,000 of the 20,000 outstanding common shares of Swift Company for $760,000. On January 1, 2010, Peterson Company sold 2,000 of its shares of Swift Company on the open market for $90 per share. Swift Company’s stockholders’ equity on January 1, 2006, and January 1, 2010, was as follows:

1/1/061/1/10 Common stock, $10 par value$200,000$ 200,000 Other contributed capital200,000200,000 Retained earnings 400,000 700,000 $800,000$1,100,000

The difference between implied and book value is assigned to Swift Company’s land. Assuming no other equity transactions, the amount of the difference between implied and book value that would be added to land on a workpaper for the preparation of consolidated statements on December 31, 2010, would be

a.$120,000. 

b.$115,000. 

c.$105,000. 

d.$84,000. 

e. None of these.