Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019 for...
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Accounting
Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019 for $2.400,000 cash. As of that date Solar had the following account balances. As of that date Solar had the following account balances: Cash Accounts receivable Inventory Building net (10 year life) Equipment.net (5 year life) Land Accounts Payable Bonds Payable (Face amount $1.000.000: due 12/31/2023) Common stock Additional paid in capital Retained earning Book Value Fair value $630,000 $630,000 775,000 775.000 350.000 100.000 1.000.000 900,000 300,000 400.000 600.000 200.000 125.000 125.000 2.000.000 2.050.000 500,000 250,000 780,000 2019 Solar had net income of $250,000 reported on a separate basis. Huey reported net income $300,000, which does not include any income from Solar. In addition, Solar paid dividends of $16.000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/depreciation for assets and bonds payable. Huey's stockholders equity on January 1, 2019 consisted of the following: stock $1.000.000 paid-in capital $2,250,000 earnings $6,000,000 stockholders' equity $9,250,000 is the consolidated total stockholders' equity on the consolidated balance sheet as of acquisition date? O $10,000,000 o $1,530 000 O $9,250,000 O $10,780,000


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