Lily Limited acquired 100 percent of the shares of Daisy Limited on 1 January 2017. At the date of acquisition, all assets of Daisy Limited were at fair value, other than an item of plant, which had a fair value $8,000. Daisy Limited adopts the historical cost model for measuring its plant. The original cost of this plant is $10,000 and the accumulated depreciation is $4,000. The plan is expected to have a remaining useful life of 5 years and no residual value. The tax rate is 30 percent.

Lily Limited must prepare the consolidated financial statements for the financial year ended 31 December 2017

What is the carrying amount of the plant as at 31 December 2017 in Daisy Limiteds own financial statements?

A. $6,400

B. $8,000

C. $4,800

D. $6,000

Explain detail and show calculation steps