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please answer with detailed explanation X Co acquired 100 % of Y Co...

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Accounting

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X Co acquired 100 % of Y Co outstanding capital stock for S430,000 cash. Immediately before the purchase, the balance sheets of both reported the following: XCO Y CO Assets 2,000,000 750,000 Liabilities 400,000 400,000 Common Stock 1,000,000 310,000 Retained Earnings 600,000 40,000 Liabilities & Stockholders' Equity 2,000,000 750,000 At the date of purchase, the fair value of Y assets was $50,000 more than the Book value amounts. In the consolidated balance sheet prepared immediately after the purchase, the consolidated stockholders' equity should amount to Select one: a. 1,250,000 b. 1,600,000 C. 1,680,000 d. 1,650,000 Only the balance sheet is consolidated on the date of a business combination of a parent company and subsidiary. Select one: True False

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