Use the Following Information to Answer Bellow Questions:
Pacific Inc

Use the following information to answer bellow Questions:
Pacific Inc. acquires all of the voting stock of Skye Company for $300 million in cash. Skye's balance sheet at the date of acquisition is as follows (in millions) :
$$\begin{array}{c}\hline{ \text { Skye Company } } \\\begin{array} { | l | r | l | r | } \hline \text { Assets } & & \text { Liabilities \& equity } & \\\hline \text { Current assets } & \$ 75 & \text { Current liabilities } & \$ 80 \\\hline \text { Land, buildings \& equipment, net } & 1,200 & \text { Long-term liabilities } & 1,500 \\\hline & & \text { Capital stock } & 100 \\\hline & & \text { Retained deficit } & ( 400 ) \\\hline & & \begin{array} { l } \text { Accumulated other comprehensive } \\\text { income }\end{array} & 10 \\\hline & & \text { Treasury stock } & ( 15 ) \\\hline \text { Total assets } & \$ 1,275 & \text { Total liabilities \& equity } & \$ 1,275 \\\hline\end{array}\end{array}$$ Skye's land, buildings & equipment have a fair value of $1,000 million. Skye's other assets and liabilities are reported at amounts that approximate fair value. Skye has unreported identifiable intangibles with a fair value of $100 million 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?

A) Debit of $175 million
B) No effect
C) Credit of $605 million
D) Credit of $795 million