The Grant Company acquired the Lee Company for $$600,000$ cash. The fair value of Lee's assets was $$520,000,$ and the company had $$40,000$ in liabilities. Which of the following choices would reflect the acquisition on Grant's financial statements?

Balance Sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Stockholders$$ Equity

Cash $+$ Lee$$s Assets $+$ Goodwill $=$ Accounts Payable $+$ Common Stock $+$ Retained Earnings Revenue $$ Expenses $=$ Net Income

A$.(600,000)+520,000+120,000=40,000+$ NA $+$ NA NA $$ NA $=$ NA $(600,000)$ OA

B$.(600,000)+480,000+120,000=$ NA $+$ NA $+$ NA NA $$ NA $=$ NA $(600,000)$ OA

C$.(600,000)+520,000+80,000=$ NA $+$ NA $+$ NA NA $$ NA $=$ NA $(600,000)$ IA

D$.(600,000)+520,000+120,000=40,000+$ NA $+$ NA NA $$ NA $=$ NA $(600,000)$ IA

Multiple Choice