3 Grant Company acquired Lee Company for $600,000 cash. The fair value of Lee's assets was $520,000, and the company had $40,000 in liabilities. Which of the following choices would reflect the acquisition onelements of Grant's financial statements?Cash(600,000)(600,000)(600,000)d. (600,000)a.b.Multiple ChoiceOOOption AOption BOption COption D+AssetsLee'sAssets520,000480,000520,000520,000Balance Sheet= Liabilities +AccountsPayable +40,000+ Goodwill =120,000120,00080,000120,000ΝΑΝΑ40,000Stockholders'EquityCommon RetainedStock + EarningsΝΑΝΑΝΑΝΑΝΑNANANARevenueΝΑΝΑΝΑΝΑIncome Statement- Expenses = Net IncomeΝΑΝΑΝΑNAΝΑΝΑΝΑΝΑStatement of CashFlows(600,000) OA(600,000) OA(600,000) IA(600,000) IA

An accounting equation refers to a mathematical representation of the transaction. It indicates that…

Grant Company acquired Lee Company for $600,000 cash. The fair value of Lee's assets was $520,000, and the company had $40,000 in liabilities. Which of the following choices would reflect the acquisition on elements of Grant's financial statements? a. Cash (600,000) b. (600,000) C. (600,000) d. (600,000) Multiple Choice O O O Option A Option B + Option C Option D Assets Balance Sheet Lee's Assets + Goodwill 520,000 480,000 520,000 520,000 120,000 120,000 80,000 120,000 = Liabilities + Accounts Payable + 40,000 = NA NA 40,000 Stockholders' Equity Common Retained Stock + Earnings Revenue - Expenses = Net Income NA NA NA NA NA NA NA NA ΝΑ Income Statement NA NA ΝΑ | NA NA NA NA NA NA NA NA Statement of Cash Flows (600,000) OA (600,000) OA (600,000) IA (600,000) IA