Pacific Inc. acquires all of the voting stock of Skye Company for $360 in cash. Skyes balance sheet at the date of acquisition is as follows:

Skye Company
Assets		Liabilities & equity
Current assets	$ 75	Current liabilities	$ 80
Land, buildings & equipment, net	1,580	Long-term liabilities	1,500
		Capital stock	100
		Retained earnings	5
		Accumulated other comprehensive loss	(10)
		Treasury stock	(20)
Total assets	$1,655	Total liabilities & equity	$1,655

Skyes land, buildings & equipment have a fair value of $1,000. Skyes other assets and liabilities are reported at amounts that approximate fair value. Skye has unreported identifiable intangibles with a fair value of $350 that meet the criteria for capitalization. On the date of acquisition consolidation working paper, what is the effect of eliminating entry (R) on Investment in Skye?

Select one:

a. Debit of $135

b. Credit of $285

c. Debit of $230

d. Credit of $135