West,Inc.holds 100 percent of the common stock of Coast Company,an investment acquired for $680,000.Immediately following the combination,West's net assets have a book value of $1,150,000 and a fair value of $1,390,000.The book value and the fair value of Coast's net assets on the date of combination are $400,000 and $550,000,respectively.Immediately following the combination,a consolidated balance sheet is prepared.
-Based on the information given above,what will be the amount of total consolidated stockholders' equity be reported in the consolidated balance sheet prepared immediately following the combination?
A)$1,390,000
B)$1,550,000
C)$1,700,000
D)$1,150,000

Question

Quizplus · Accepted Answer

The Answer of West,Inc.holds 100 percent of the common stock of Coast Company,an investment acquired for $680,000.Immediately following the combination,West's net assets have a book value of $1,150,000 and a fair value of $1,390,000.The book value and the fair value of Coast's net assets on the date of combination are $400,000 and $550,000,respectively.Immediately following the combination,a consolidated balance sheet is prepared.
-Based on the information given above,what will be the amount of total consolidated stockholders' equity be reported in the consolidated balance sheet prepared immediately following the combination?
A)$1,390,000
B)$1,550,000
C)$1,700,000
D)$1,150,000

West,IncHolds 100 Percent of the Common Stock of Coast Company,an