ACME, Inc. purchased 100% of the outstanding common stock of Smithers, Inc. two years ago. At that time, Smithers, Inc. had land with a BV of $50,000 and a FMV of $250,000, and Smithers, Inc. still owns the land. The current FMV of the land is $350,000. The consolidated balance of that land would be ________ and the consolidation entry relating to the land will be _________.

Question 5 options:

a)

$250,000; Debit to Land of $200,000

b)

$200,000; Debit to Land of $125,000

c)

$250,000; Debit to Land of $125,000

d)

$300,000; Debit to Goodwill of $50,000