A Company Has Decided to Purchase 100% of the Voting

question 32

Multiple Choice

A company has decided to purchase 100% of the voting shares of B Company for $100,000 on January 1,20x2.Immediately before the acquisition,A and B reported cash balances of $300,000 and 150,000 respectively.If Consolidated Financial Statements were prepared immediately following the acquisition,how much Cash would be reported on A's consolidated balance sheet?

• A)$250,000
• B)$350,000
• C)$550,000
• D)$450,000

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