Watkins, Inc If Watkins Pays $300,000 in Cash for Glen, at What

Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2012. At that date, Glen owns only three assets and has no liabilities: $\begin{array}{|l|r|r|}\hline & \text { Book } & \text { Fair } \\\hline & \text { Value } & \text { Value } \\\hline \text { Inventory (FIFO method) } & \mathbf{\$} 40,000 & \mathbf{\$} 50,000 \\\hline \text { Equipment (10-year life) } & 80,000 & 75,000 \\\hline \text { Building (20-year life) } & 200,000 & 300,000 \\\hline\end{array}$ If Watkins pays $300,000 in cash for Glen, at what amount would the subsidiary's Building be represented in a January 2, 2012 consolidation?

A) $200,000.
B) $225,000.
C) $273,000.
D) $279,000.
E) $300,000.