Solved

Presented Below Is the Balance Sheet of Harry Company at January

question 9

Multiple Choice

Presented below is the balance sheet of Harry Company at January 1,2015:
$\begin{array}{ll}\text { Cash } & \$ 100 \\\text { Net Fixed Assets } & {400} \\\text { Total Assets } & {\$ 500}\end{array}$
$\begin{array}{ll}\text { Accounts Payable } & \$ 20 \\\text { Long-term Bonds Payable } & 220 \\\text { Stockholders' Equity } & {260} \\\text { Total Liabilities and Stockholders' Equity } & \$ 500\end{array}$
The balance sheet of Marvelous Company at January 1,2015 is below:
$\begin{array}{ll}\text { Cash } & \$ 400 \\\text { Net Fixed Assets } & {380} \\\text { Total Assets } &{\$ 780}\end{array}$
$\begin{array}{ll}\text { Accounts Payable } & \$ 120 \\\text { Long-term Bonds Payable } & 280 \\\text { Stockholders' Equity } & \underline{380} \\\text { Total Liabilities and Stockholders' Equity } & \$ 780\end{array}$
On January 1,2015,Marvelous Company acquired 100 percent of the outstanding common stock of Harry Company for $260 cash.The book value and fair value of Harry's assets and liabilities were equal.
What is the amount of Total Stockholders' Equity on the consolidated balance sheet immediately after the acquisition of Harry Company's stock? (Assume elimination entries are completed.)

Definitions:

Transferred Out

In manufacturing and accounting, refers to goods or materials that have been moved from one process or department to another in the production process.

Weighted-Average Method

A cost-flow assumption used in inventory valuation and costing, calculating the cost of goods sold and ending inventory based on a weighted average of costs.

Equivalent Unit

A concept used in process costing that represents the amount of work done on incomplete units, expressed in terms of fully completed units.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the average cost of all inventory units.