Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Beta reported total assets of $500,000, liabilities of $280,000, and stockholders' equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders' equity of $150,000. Included in Standard's liabilities was an account payable to Beta in the amount of $20,000, which Beta included in its accounts receivable. Based on the preceding information, what amount of total assets did Beta report in its balance sheet immediately after the acquisition? A. $500,000

B. $650,000

C. $750,000

D. $900,00

The amount of total assets did Beta report in its balance sheet immediately after the acquisition is $650,000. The right answer is B

Explanation:

In order to calculate the amount of total assets did Beta report in its balance sheet immediately after the acquisition we would have to make the following calculation:

amount of total assets did Beta report in its balance sheet=Total assets reported by beta+Fair value of the investment

According to the given data:

Total assets reported by beta=$500,000

Fair value of the investment=$150,000

Therefore, amount of total assets did Beta report in its balance sheet=$500,000+$150,000

amount of total assets did Beta report in its balance sheet=$650,000

The amount of total assets did Beta report in its balance sheet immediately after the acquisition is $650,000