Presented Below Is the Balance Sheet of Hal Company at January

question 112

Multiple Choice

Presented below is the balance sheet of Hal Company at January 1,2015: The balance sheet of Monty Company at January 1,2015 is below:
On January 1,2015,Monty Company acquired 100 percent of the outstanding common stock of Hal Company for $260 cash.Hal Company generated net income of $30 during the year ended December 31,2015.There were no intercompany sales.What is the balance in the Investment in Hal Company account on December 31,2015 before elimination entries are prepared?

• A)$0
• B)$30
• C)$230
• D)$290

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Definitions:

Current Year

Refers to the ongoing calendar or fiscal year in which business is conducted or accounting is reported.

Stewardship

The responsibility for overseeing and protecting something considered worth caring for and preserving, often in the context of managing financial resources or the environment.

Financial Statements

Official records that outline the financial activities of a business, organization, or individual, including the balance sheet, income statement, and cash flow statement.

Measuring Cost

The process of determining the monetary amount required to obtain or produce an asset, incur a liability, or carry out a service.