following balance sheets are for the Denver Company and

the Colorado Company as of January 1, 19xl. The statements

are presented as they appeared immediately before the acquisition

of Colorado Company stock by the Denver Company.

January 1, 19x1

Denver Colorado

Assets Company Company

Other Current Assets $ 2,000,000 $ 100,000

Inventory 250,000 130,000

Equipment 4,000,000 2,400,000

Accumulated Depreciation

-Equipment (1,500,000) (1,600,000)

Buildings 6,000,000 4,000,000

Accumulated Depreciation

-Buildings (3,000,000) (2,500,000)

$7,750,000 $2,530,000

Equities

Current Liabilities $ 400,000 $ 75,000

Bonds Payable 3,000,000 1,500,000

Premium on Bonds 150,000

Capital Stock-

Denver ($10 par) 3,000,000

Capital Stock-

Colorado ($25 par) 500,000

Premium on Stock-

Colorado 100,000

Retained Earnings-

Denver 1,350,000

Retained Earnings-

Colorado 205,000

$7,750,000 $2,530,000

The following balance sheets are for the Denver Company and the Colorado Company as of January 1, 19xl. The statements are presented as they appeared immediately before the acquisition of Colorado Company stock by the Denver Company. January 1, 19x1 Denver Colorado Assets Company Company Other Current Assets $ 2,000,000 $ 100,000 Inventory 250,000 130,000 Equipment 4,000,000 2,400,000 Accumulated Depreciation -Equipment (1,500,000) (1,600,000) Buildings 6,000,000 4,000,000 Accumulated Depreciation -Buildings (3,000,000) (2,500,000) $7,750,000 $2,530,000 Equities Current Liabilities $ 400,000 $ 75,000 Bonds Payable 3,000,000 1,500,000 Premium on Bonds 150,000 Capital StockDenver ($10 par) 3,000,000 Capital StockColorado ($25 par) 500,000 Premium on StockColorado 100,000 Retained EarningsDenver 1,350,000 Retained EarningsColorado 205,000 $7,750,000 $2,530,000 assume that the Denver Company acquired on January 1, 19x1, 15,000 shares of Colorado Company stock by paying $900,000 in cash plus broker's fees of $25;000. Assuming that the entity method of valuing minority interest is used, the amount to be shown for Minority Interest on the January 1, 19x1, consolidated balance sheet should be A. $121,250. B. $201,250. c. $300,000. D. $308,333