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Presented Below Are the Balance Sheets of Monty Company and Hall

question 26

Multiple Choice

Presented below are the balance sheets of Monty Company and Hall Company at January 1, 20X6:  Hall Company  Monty Company  Balance Sheet  Balance Sheet  January 1,20X6 January 1,20X6 Cash $100 Cash $400 Net fixed assets 400 Net fixed assets 380 Total assets $500 Total assets $780 Accounts payable $20 Accounts payable $120 Long-term bonds  Long-term bonds  payable 220 payable 280 Stockholders’ equity 260 Stockholders’ equity 380 Total liabilities and  Total liabilities and  stockholders’ equity $500 stockholders’ equity $780\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 liabilities on the consolidated balance sheet immediately after the acquisition of Hall's stock.

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