Presented below is the balance sheet of Hansen Company at January 1, 2015: ...
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Accounting
Presented below is the balance sheet of Hansen Company at January 1, 2015:
Cash $100
Net Fixed Assets 400
Total Assets $500
Accounts Payable $20
Long-term Bonds Payable 220
Stockholders' Equity 260
Total Liabilities and Stockholders' Equity $500
The balance sheet of Monty Company at January 1, 2015 is below:
Cash $400
Net Fixed Assets 380
Total Assets $780
Accounts Payable $120
Long-term Bonds Payable 280
Stockholders' Equity 380
Total Liabilities and Stockholders' Equity $780
On January 1, 2015, Monty Company acquired 100 percent of the outstanding common stock of Hansen Company for $260 cash. The book value and fair value of Hansen's assets and liabilities were equal.
What is the amount of Total Liabilities on the consolidated balance sheet immediately after the acquisition of Hansen Company's stock? (Assume elimination entries are completed.)
A) $0
B) $380
C) $400
D) $640
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