The balance sheets for Pip Ltd. and Squeak Inc. are shown as at January 1, 2019, the day that Pip acquired 100% of the outstanding shares of Squeak. At that date the fair value of the inventory and plant were respectively, $2,000 and $7,000 higher for Pip and $1,000 and $5,000 higher for Squeak, then their carrying amounts.

	Pip Ltd.			Speak Inc.
Cash & A/R	$	50,000		$	26,000
Inventory		30,000			7,000
Plant		70,000			30,000
	$	140,000		$	63,000
Liabilities	$	80,000		$	33,000
Common shares		25,000			12,500
Retained earnings		35,000			17,500
	$	140,000		$	63,000

At what amount will the inventory and plant appear on the consolidated balance sheet prepared on January 1, 2019?

Multiple Choice

a. Inventory - $39,000; Plant - $107,000

b. Inventory - $37,000; Plant - $112,000

c. Inventory - $38,000; Plant - $105,000

d. Inventory - $40,000; Plant - $100,000