BC and OP are both private not-for-profit entities. They are combined to create MN, a private not-for-profit with an entirely new board of directors. BC has land with a book value of $300,000 and a...

BC and OP are both private not-for-profit entities. They are combined to create MN, a private not-for-profit with an entirely new board of directors. BC has land with a book value of $300,000 and a fair value of $400,000. OP has land with a book value of $500,000 and a fair value of $550,000.

After MN has been formed, what is reported for land?
a. $800,000
b. $850,000
c. $900,000
d. $950,000