Use the Following Information to Answer the Question(s) Below $$\begin{array} { | l | l | } \hline\text { Parent Company Theory } & \text { Entity Theory } \\\hline \$ 69,600 & \$ 72,000 \\\hline\end{array}$$

Use the following information to answer the question(s) below.

Paris Corporation purchased 80% of the outstanding voting common stock of Sanders Corporation on January 1, 2014, at a cost of $400,000. The stockholders' equity of Sanders Corporation on this date consisted of $200,000 of Capital Stock and $100,000 of Retained Earnings. Book values were equal to fair values except for land and inventory. The book value of Sanders' land was $10,000, and fair value was $22,000. The book value of Sanders' inventory was $30,000, and fair value was $25,000.

-Assume Paris's land account had a book value of $50,000 and a fair value of $70,000 on January 1,2014.Using the parent company and entity theories,what amounts would be reported on the consolidated balance sheet at January 1,2014 for the land account?

A) $$\begin{array} { | l | l | } \hline\text { Parent Company Theory } & \text { Entity Theory } \\\hline \$ 69,600 & \$ 72,000 \\\hline\end{array}$$

B) $$\begin{array} { | l | l | } \hline\text { Parent Company Theory } & \text { Entity Theory } \\\hline\$ 72,000 & \$ 72,000 \\\hline\end{array}$$

C) $$\begin{array} { | l | l | } \hline\text { Parent Company Theory } & \text { Entity Theory } \\\hline \$ 72,000 & \$ 92,000 \\\hline\end{array}$$

D) $$\begin{array} { | l | l | } \hline\text { Parent Company Theory } & \text { Entity Theory } \\\hline\$ 92,000 & \$ 72,000 \\\hline\end{array}$$