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 an 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.

(A) (1)

Based on the information provided, at the time of the transfer, Selvick Company should record

	the building at $220,000 and accumulated depreciation of $44,000.
	the building at $220,000 with no accumulated depreciation.
	the building at $176,000 with no accumulated depreciation.
	the building at $250,000 with no accumulated depreciation.

(B) (1)

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

	$125,000
	$250,000
	$301,000
	$345,000

(C)

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

	$125,000.
	$176,000.
	$220,000.
	$250,000.