q.31

X Corporation acquired 100 % of Y Corporations outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both

corporations reported the following:

XCO Y CO

Assets $2,000,000 $750,000

Liabilities $ 750,000 $400,000

Common Stock 1,000,000 310,000

Retained Earnings 250,000 40,000

Liabilities & Stockholders Equity $2,000,000 $750,000

At the date of purchase, the fair value of Y assets was $50,000 more than the Book value amounts. In the consolidated balance sheet prepared immediately after the purchase,the consolidated stockholders equity should amount to

Select one:

a. 1,680,000

b. 1,600,000

c. 1,250,000

d. 1,650,000