Presented Below Are the Balance Sheets of Monty Company and Hall

question 50

Multiple Choice

Presented below are the balance sheets of Monty Company and Hall Company at January 1, 20X6: $\begin{array}{lll}\text { Hall Company Balance } && \text { Monty Company Balance } \\\text { Sheet } && \text { Sheet } \\\text { January 1,20X6 } && \text { J anuary 1, 20X6 }\\\text { Cash } & \$ 100 & \text { Cash }& \$ 400 \\\text { Net fixed assets } & \underline{400} & \text { Net fixed assets }&380\\\text { Total assets }&\$500&\text { Total assets }&\$780\\\text { Accounts payable Long- } & \$ 20 & \text { Accounts payable } & \$ 120 \\\text { termbonds } & & \text { Long-termbonds } & \\\text { payable } & 220 & \text { payable } & 280\\\text { Stockholders' equity } & 260 & \text { Stockholders' equity } &380\\\text { Total liabilities and }&&\text { Total liabilities and }\\\text { stockholders' equity }&\$ 500 &\text { stockholders' equity }& \$ 780\end{array}$ On January 1, 20X6, Monty Company acquired 100% of the outstanding common stock of Hall Company for $260 in cash. Which of the following statements regarding the consolidated balance sheet immediately after the acquisition is not correct?

• A) Total net fixed assets will be $780.
• B) Total cash will be $500.
• C) Total liabilities will be $640.
• D) Total assets will be $1,280.

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