Select the correct answer for each of the following questions.
On January 1, 20X1, Rolan Corporation issued 10,000 shares of common stock in exchange for all of Sandin Corporation's outstanding stock. Condensed balance sheets of Rolan and Sandin immediately before the combination follow:
| Rolan | Sandin |
Total Assets | $1,000,000 | $500,000 |
Liabilities | $ 300,000 | $150,000 |
Common Stock ($10 par) | 200,000 | 100,000 |
Retained Earnings | 500,000 | 250,000 |
Total Liabilities and Equities | $1,000,000 | $500,000 |
Rolan's common stock had a market price of $60 per share on January 1, 20X1. The market price of Sandin's stock was not readily determinable. The fair value of Sandin's net identifiable assets was determined to be $570,000. Rolan's investment in Sandin's stock will be stated in Rolan's balance sheet immediately after the combination in the amount of:
a. $350,000.
b. $500,000.
c. $570,000.
d. $600,000.
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