Palmito Co. acquired 90% of the outstanding stock of the Slaughter Co. for $250,000 in cash. Palmito had no previous equity interest in Slaughter. Slaughters identifiable assets acquired and liabilities assumed were reported at their acquisition-date fair values in its separate balance sheet immediately following the acquisition. Slaughters accounts receivable include a $10,000 receivable from Palmito. Slaughter also has a $5,000 account payable to Palmito. Palmitos separate balance sheet and the consolidated balance sheet immediately following the acquisition are presented below:

PalmitoConsolidatedCurrent assets$220,000$340,000Investment in Slaughter250,000--Fixed assets410,000575,000Goodwill--25,000$880,000$940,000Current liabilities$105,000$140,000Common stock400,000400,000Additional paid-in capital75,00075,000Retained earnings300,000300,000Noncontrolling interest--25,000$880,000$940,000

Question

What was the total of Slaughters current liabilities on its separate balance sheet at the time of the acquisition?

A.$35,000

B.$40,000

C.$45,000

D.$50,000