REFERENCE: Ref.03_05 Perry Company Obtains 100% of the Stock of Hurley Corporation

REFERENCE: Ref.03_05
Perry Company obtains 100% of the stock of Hurley Corporation on January 1,2009,for $3,800 cash.As of that date Hurley has the following trial balance;
SHAPE \* MERGEFORMAT
Any excess of consideration transferred over fair value is considered goodwill with an indefinite life.FIFO inventory valuation method is used.
-Compute the amount of Hurley's equipment that would be reported on a December 31,2010,consolidated balance sheet.

A) $0.
B) $1,000.
C) $1,250.
D) $1,125.
E) $1,200.