AB Inc. acquired 100% of the voting common stock of CD Inc. on January 1, 2013. On that date, AB had total liabilities with a book value $650,000 and a fair value of $680,000. CD had total liabilities with a book value of $430,000 and a fair value of $420,000. Assuming both companies continue to operate separately, how much total liabilities that would appear on the consolidated Balance Sheet at January 1, 2013? Select one: O a. $1,070,000 O b. $1,100,000 O c. $1,110,000 O d. $1,080,000

AB Inc. acquired 100% of the voting common stock of CD Inc. on January 1, 2013. On that date, AB had total liabilities with a book value $650,000 and a fair value of $680,000. CD had total liabilities with a book value of $430,000 and a fair value of $420,000. Assuming both companies continue to operate separately, how much total liabilities that would appear on the consolidated Balance Sheet at January 1, 2013? Select one: O a. $1,070,000 O b. $1,100,000 O c. $1,110,000 O d. $1,080,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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