Presented Below Are the Balance Sheets of Monty Company and Hall

question 98

Multiple Choice

Presented below are the balance sheets of Monty Company and Hall Company at January 1, 20X6: $\begin{array}{ll}\text { Hall Company Balance } && \text { Monty Company Balance } \\\text { Sheet } && \text { Sheet } \\\text { January 1,20X6 } && \text { January 1,20X6 }\\\text { Cash } & \$ 100 & \text { Cash } &\$ 400 \\\text { Net fixed assets } & \underline{400} & \text { Net fixed assets } & \underline{380} \\\text { Total assets } & \$ 500 & \text { Total assets } &\$ 780 \\\text { Accounts payable Long- } & \$ 20 & \text { Accounts payable } & \$ 120 \\\text { termbonds } & & \text { Long-termbonds } & \\\text { payable } & 220 & \text { payable } &280\\\text { Stockholders' equity }&260&\text { Stockholders' equity }&380\\\text { Total liabilities and }&&\text { Total liabilities and }\\\text { stockholders' equity }&\$500&\text { stockholders' equity }&\$780\end{array}$ 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) $780
• C) $1,020
• D) $1,280

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