On 12/31/Year 1 Passey Co. acquired a 100% interest inSolomon Co. by exchanging

On 12/31/Year 1 Passey Co. acquired a 100% interest inSolomon Co. by exchanging 10000 shares of its common stock for100000 shares of Solomons common stock. The fair market value ofPasseys common stock on December 31 Year 1 was $9 per share andthe fair value of Solomons was $3.50 per share.Additional information as of December 31 Year 1 is asfollows:Solomon Co.Book ValuesFair ValuesCurrent assets$115000$115000Plant assets200000255000Liabilities1000010000Passey Co.Plant assets$1700000$1800000Passeys consolidated financial statements as of December 31 Year1 would report plant assets at:(Points : 10)$1700000$1800000$1955000$2055000