Problem

On January 1,2013, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. to acquire these shares, Moody issues $400 long term liabilities and 40 shares of common stock having a par value of $1 per share but a fair value of $ 10 per share. Moody paid $ 20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheet for the two companies were as follows:

                                                 Moody                  Osorio

Cash                                          $ 180                       $ 40

 Receivables                                180                           40

 Inventories                                810                          180

 Land                                         1,080                         280

 Building(net)                              1,260                         440

 Equipment(net)                          480                          100

Account Payable                          (450)                         (80)

 Long term liabilities                     (1,290)                        (400)

 Common stock($ 1 par)              (330)

 Common stock($20 par)             (240)

 Additional Paid in capital              (1080)                        (340)

Retained earnings                       (1260)                        (340)

Note: Parentheses indicate a credit balance.

In Moody appraisal of Osorio, three asset were deemed to be undervalued on the subsidiary's books: Inventory by $ 10, Land by $ 40, Building by $ 60.

Compute the amount of consolidated land at date of acquisition.

$ 320

$ 1,000

$ 400

$ 960

$ 920.