Gigantic Corp acquired a machine from Miko Company in exchange for

10,000

Gigantic common shares, for which the quoted market price on the stock exchange was $20 per share. The machine was estimated by Gigantic to have a fair market value of

$225,000.

(Assume that the market price of the shares and the fair value of the machine are equally reliable.) The book value of the machine in Miko's records was

$190,000.

At what amount should Gigantic record the machine?

A.

$200,000

B.

$190,000

C.

$212,500

D.

$225,000