at its inception, peacock company purchased land for $50,000 and a building for $220,000. after exactly 4 years, peacock transferred these assets and cash of $75,000 to a newly created subsidiary, selvick company, in exchange for 25,000 shares of selvick's $5 par value stock. peacock uses straight-line depreciation. when purchased, the building had a useful life of 20 years with no expected salvage value. an appraisal at the time of the transfer revealed that the building has a fair value of $250,000.