Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company. The following financial statement information is for the investor company and the investee company on January 1, 2013, prepared immediately before this transaction.

	Book Values
	Investor	Investee
Receivables & inventories	$50,000	$25,000
Land	100,000	50,000
Property & equipment	112,500	50,000
Total assets	$262,500	$125,000
Liabilities	$75,000	$40,000
Common stock ($2 par)	10,000	5,000
Additional paid-in capital	140,000	75,000
Retained earnings	37,500	5,000
Total liabilities & equity	$262,500	$125,000

Compute the investment account (market value equals book value) Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, and the transaction resulted in no recorded goodwill or bargain purchase gain. What is the balance in the pre-consolidation "investment in investee" account on the investor company's books on January 1, 2013, immediately after the acquisition of the investee company voting common stock?

A. Not enough information provided

B. $5,000

C. $85,000

D. $75,000