PLEASE PROVIDE STEPS

Percy Inc. acquired 80% of the outstanding stock of Sillson Company in a business combination. The book values of Sillson's net assets are equal to the fair values except for the building, whose net book value and fair value are $500,000 and $900,000, respectively. At what amount is the building reported on the consolidated balance sheet?

A) $400,000

B) $500,000

C) $640,000

D) $900,000