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Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000 cash. As of that date Solar had the following

Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000 cash. As of that date Solar had the following account balances:

Book Value

Fair value

Cash

$630,000

$630,000

Accounts receivable

775,000

775,000

Inventory

350,000

400,000

Building-net (10 year life)

1,000,000

900,000

Equipment-net (5 year life)

300,000

400,000

Land

600,000

900,000

Accounts Payable

125,000

125,000

Bonds Payable (Face amount $1,000,000, due 12/31/2023)

2,000,000

2,050,000

Common stock

500,000

Additional paid-in capital

250,000

Retained earnings

780,000

In 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years. Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solar's building would be included on the consolidated balance sheet at December 31, 2019?

Select one:

A. $810,000

B. $990,000

C. $890,000

D. $880,000

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