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B Corporation acquired 100% of C Corporation's outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both corporations reported the
B Corporation acquired 100% of C Corporation's outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both corporations reported the following: B C $2,000,000 Assets $750,000 $ 750,000 Liabilities $400,000 1,000,000 Common Stock 310,000 250,000 Retained Earnings 40,000 At the date of purchase, the fair value of C assets was $50,000 more than the book value. In the consolidated balance sheet prepared immediately after the purchase, the consolidated stockholders' equity should amount to Select one: a. 1,250,000 b. 1,650,000 c. 1,600,000 d. 1,680,000
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