Consolidating entries (market value differs from book value) 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 was prepared immediately after the acquisition and presents the acquisition-date balance sheet for the pre-consolidation investor company, the investee company and the consolidated financial statements for the investor and investee. Investor Investee Consolidated Cash & receivables $1,000,000 $125,000 $1,125,000 Inventory 750,000 312,500 1,062,500 Property & equipment $2,875,000 $1,000,000 4,000,000 Investment in investee $875,000 Identifiable intangible 137,500 Goodwill 60,000 Total assets $5,500,000 $1,437,500 $6,385,000 Current liabilities $500,000 $250,000 $750,000 Accrued expenses 375,000 375,000 Bonds payable $625,000 635,000 Common stock 2,087,500 125,000 2,087,500 Additional paid-in capital 1,787,500 156,250 1,787,500 Retained earnings 750,000 281.250 750,000 Total liabilities and equity $5,500,000 $1,437,500 $6,385,000 In preparing the consolidated financial statements, what is the amount of the debit or credit made to the "investment in investee" account as part of the [A] consolidating entry? (Recall from the chapter that the [A] consolidating entry reclassifies the acquisition accounting premium from the investment account to the individual net assets that require adjustment from book value to fair value.) O$60,000 O$312,500 O$322,500 O$875,000