Berlin, Inc. holds 100 percent of the common stock of Sea Company, an investment acquired for $520,000. Immediately following the combination, Berlin's net assets have a book value of $900,000 and a fair value of $1,050,000. The book and fair value of Sea's net assets on the date of combination are $350,000 and $425,000, respectively. Immediately following the combination, a consolidated balance sheet is prepared.

41.

Required information

Based on the information given above, what will be the amount of net assets reported in the consolidated balance sheet?

$1,420,000

$1,325,000

$1,250,000

$900,000