X Co acquired 100 % of Y Co outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both reported the following:

X CO Y CO

Assets 2,000,000 750,000

Liabilities 400,000 400,000

Common Stock 1,000,000 310,000

Retained Earnings 600,000 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. 1,250,000

b. 1,600,000

c. 1,680,000

d. 1,650,000

Only the balance sheet is consolidated on the date of a business combination of a parent company and subsidiary.

Select one:

True

False