Presented Below Are the Balance Sheets of Monty Company and Hall

Presented below are the balance sheets of Monty Company and Hall Company at January 1, 20X6: $\begin{array}{ll}\text { Hall Company Balance } && \text { Monty Company Balance } \\\text { Sheet } && \text { Sheet } \\\text { January 1,20X6 } && \text { January 1,20X6 }\\\text { Cash } & \$ 100 & \text { Cash } &\$ 400 \\\text { Net fixed assets } & \underline{400} & \text { Net fixed assets } & \underline{380} \\\text { Total assets } & \$ 500 & \text { Total assets } &\$ 780 \\\text { Accounts payable Long- } & \$ 20 & \text { Accounts payable } & \$ 120 \\\text { termbonds } & & \text { Long-termbonds } & \\\text { payable } & 220 & \text { payable } &280\\\text { Stockholders' equity }&260&\text { Stockholders' equity }&380\\\text { Total liabilities and }&&\text { Total liabilities and }\\\text { stockholders' equity }&\$500&\text { stockholders' equity }&\$780\end{array}$ On January 1, 20X6, Monty Company acquired 100% of the outstanding common stock of Hall Company for $260 in cash. The net income for 20X6 was $30 and $40 for Hall Company and Monty Company, respectively. None of the income resulted from intercompany sales. The net income on the consolidated income statement is:

A) $35
B) $- 0-
C) $40
D) $30