Entity A owned 100% shares of Entity B. Entity A incorporated a new subsidiary Entity C and upon creation of Entity C, Entity A contributed the shares in Entity B to Entity C in exchange for 100% of the shares of Entity C.

In the statutory books of Entity C the investment of Entity B was originally recorded at the nominal value of the Entity C shares issued, which was significantly lower than the fair market value of the Entity B at that moment. In a later year, Entity C revalued the investment of Entity B to the fair market value of Entity B. QUESTION : what cost Entity C should recognize its investment in Entity B?