Consolidating entries (market value differs from book value) Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company. The following financial statement information was prepared immediately after the acquisition and presents the acquisition-date balance sheet for the pre-consolidation investor company, the investee company and the consolidated financial statements for the investor and investee.

	Investor	Investee	Consolidated
Cash & receivables	$500,000	$62,500	$562,500
Inventory	375,000	156,250	531,250
Property & equipment	$1,437,500	$500,000	2,000,000
Investment in investee	$437,500	_	_
Identifiable intangible	_	_	68,750
Goodwill	_	_	30,000
Total assets	$2,750,000	$718,750	$3,192,500
Current liabilities	$250,000	$125,000	$375,000
Accrued expenses	187,500	_	187,500
Bonds payable	_	$312,500	317,500
Common stock	1,043,750	62,500	1,043,750
Additional paid-in capital	893,750	78,125	893,750
Retained earnings	375,000	140,625	375,000
Total liabilities and equity	$2,750,000	$718,750	$3,192,500

In preparing the consolidated financial statements, what is the amount of the debit or credit made to the "investment in investee" account as part of the [A] consolidating entry? (Recall from the chapter that the [A] consolidating entry reclassifies the acquisition accounting premium from the investment account to the individual net assets that require adjustment from book value to fair value.)

A. $30,000

B. $161,250

C. $156,250

D. $437,500