At its inception, Peacock Company purchased land for $50,000 and a building for $220,000. After exactly 4 years, it transferred these assets and cash of $75,000 to a newly created subsidiary, Selvick Company, in exchange for 25,000 shares of Selvick's $5 par value stock. Peacock uses straight-line depreciation. When purchased, the building had a useful life of 20 years with no expected salvage value. An appraisal at the time of the transfer revealed that the building has a fair value of $250,000. To effect the combination, Peacock paid finder's fees of $40,000, legal fees of $13,000, audit fees related to the stock issuance of $10,000, stock registration fees of $5,000, and stock listing application fees of $4,000.

(a) Based on the information provided, what amount would be reported by Peacock Company as investment in Selvick Company common stock? (a) Based on the information provided, what amount would be reported by Peacock Company as investment in Selvick Company common stock?

A) $125,000 B) $250,000 C) $301,000 D) $345,000

(b) Based on the preceding information, Selvick Company will report additional paid-in capital of

A) $125,000. B) $176,000. C) $220,000. D) $250,000.

(c) Based on the preceding information, under the acquisition method, what amount relating to the business combination would be acquisition expensed

A) $72,000 B) $19,000 C) $53,000 D) $63,000

(d) Based on the preceding information, under the acquisition method

A) $72,000 of stock issue costs are treated as goodwill. B) $19,000 of stock issue costs are treated as a reduction in the paid-in capital. C) $19,000 of stock issue costs are expensed. D) $72,000 of stock issue costs are expensed.