Presented Below Are the Balance Sheets of Monty Company and Hall

question 20

Multiple Choice

Presented below are the balance sheets of Monty Company and Hall Company at January 1, 20X6: $\begin{array}{lrlr}\text { Hall Company } && \text { Monty Company } \\\text { Balance Sheet } && \text { Balance Sheet } \\\text { January } 1,20 \mathrm{X} 6 && \text { January } 1,20 \mathrm{X} 6\\\text { Cash } & \$ 100 & \text { Cash } & \$ 400 \\\text { Net fixed assets } & 400 & \text { Net fixed assets } & 380 \\\text { Total assets } & \$ 500 & \text { Total assets } & \$ 780\\\text { Accounts payable } & \$ 20 &\text { Accounts payable }&\$120\\\text { Long-term bonds }&&\text { Long-term bonds }\\\text { payable } & 220 & \text { payable } & 280 \\\text { Stockholders' equity } & \underline{260} & \text { Stockholders' equity } & \underline{380}\\\text { Total liabilities and } & - & \text { Total liabilities and } & \\\text { stockholders' equity } & \$ 500 & \text { stockholders' equity } & \$ 780\end{array}$ On January 1, 20X6, Monty Company acquired 100% of the outstanding common stock of Hall Company for $260 in cash._____ is the balance of the cash and other assets on the consolidated balance sheet immediately after the acquisition of Hall's stock.

• A)$-0-
• B)$1,280
• C)$780
• D)$1,020

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Definitions:

Midline

An imaginary line that divides the body into equal right and left halves.

Underlying Fascia

The connective tissue located beneath the skin and muscles, which encloses and separates muscle layers, providing structural support and facilitating movement.

Blunt Probe

A smooth, rounded instrument used in dissection and surgical procedures to explore or separate tissues without cutting them.

Acromion Process

A bony projection on the scapula (shoulder blade) forming the highest point of the shoulder.