Presented Below Are the Balance Sheets of Monty Company and Hall

question 102

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. The net income for 20X6 was $30 and $40 for Hall Company and Monty Company, respectively. None of the income resulted from intercompany sales. The net income on the consolidated income statement is:

• A) $35
• B) $- 0-
• C) $40
• D) $30

---

Definitions:

Service Pack

An update package issued for software, typically containing fixes for known bugs and vulnerabilities, as well as performance enhancements and new features.

Patch

Software designed to update, fix, or improve a computer program, often addressing security vulnerabilities or bugs.

Upgrade

The process of replacing a product with a newer version or improving its features, capabilities, or performance.

Object-Oriented Programming

A programming paradigm based on the concept of "objects", which can contain data, in the form of fields or attributes, and code, in the form of procedures or methods.