Presented below is the balance sheet of Hal Company at January 1,2015: The balance sheet of Monty Company at January 1,2015 is below:
On January 1,2015,Monty Company acquired 100 percent of the outstanding common stock of Hal Company for $260 cash.What is the amount of Total Assets on the consolidated balance sheet immediately after the acquisition of Hal Company's stock? (Assume elimination entries are completed.)
A)$0
B)$780
C)$1,020
D)$1,280

Question

Presented below is the balance sheet of Hal Company at January 1,2015:   The balance sheet of Monty Company at January 1,2015 is below:
  On January 1,2015,Monty Company acquired 100 percent of the outstanding common stock of Hal Company for $260 cash.What is the amount of Total Assets on the consolidated balance sheet immediately after the acquisition of Hal Company's stock? (Assume elimination entries are completed.)
A)$0 
B)$780 
C)$1,020 
D)$1,280

Quizplus · Accepted Answer

To consolidate the two companies, we need to eliminate the intercompany transactions. As there were no intercompany transactions in this case, the consolidated balance sheet will simply be the sum of the individual balance sheets of Hal and Monty. 
Total Assets on the consolidated balance sheet = Total Assets of Hal + Total Assets of Monty = $520 + $500 = $1,020. 
Therefore, the correct answer is C.

Presented Below Is the Balance Sheet of Hal Company at January