Presented Below Is the Balance Sheet of Hal Company at January

question 32

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.What is the balance in the Investment in Hal Company account on the consolidated balance sheet immediately after the acquisition of Hal Company's stock? (Assume elimination entries are completed.)

• A)$0
• B)$260
• C)$380
• D)$500

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Definitions:

Accepts Credit Cards

This term indicates a business's or entity's capability to process transactions using credit cards as a form of payment.

Form of Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to improve cash flow.

Securitizations

The process of pooling various types of contractual debt such as mortgages or loans and selling their related cash flows to third party investors as securities.

Consolidate

The process of combining financial statements from different entities within a group to produce a single set of financial statements.