Paris, Inc. holds 100 percent of the common stock of Stockholm Company, an investment acquired for $520,000. Immediately following the combination, Paris's net assets have a book value of $900,000 and a fair value of $1,050,000. The book and fair value of Stockholm's net assets on the date of combination are $350,000 and $425,000, respectively. Immediately following the combination, a consolidated balance sheet is prepared.Based on the information given above, what will be the amount of net assets reported in the consolidated balance sheet?
A. $1,420,000
B. $900,000
C. $1,250,000
D. $1,325,000
Answer: B
You might also like to view...
The process of adjusting the bond interest expense account for any premium or discount is called amortization of the premium or discount
a. True b. False Indicate whether the statement is true or false
In a straight rebuy, ________
A) the "in" suppliers try to maintain product and service quality to keep the business B) the "in" suppliers feel pressured to protect an account C) the "out" suppliers view the situation as an opportunity to gain new business D) a company buys a product or a service for the first time E) buyers are keen on revising product specifications
The phenomenon known as "flight to quality" causes yields on government bond and corporate bonds
A) to rise in tandem. B) to fall in tandem. C) to move in opposite directions. D) to become less volatile.
Electronic document management (EDM) is the computer-to-computer exchange of business data in structured formats that allow direct processing of those electronic documents by the receiving computer system.
Answer the following statement true (T) or false (F)