Paris,IncHolds 100 Percent of the Common Stock of Stockholm Company,an

Multiple Choice

Paris,Inc.holds 100 percent of the common stock of Stockholm Company,an investment acquired for $520,000.Immediately following the combination,Paris's net assets have a book value of $900,000 and a fair value of $1,050,000.The book and fair value of Stockholm's net assets on the date of combination are $350,000 and $425,000,respectively.Immediately following the combination,a consolidated balance sheet is prepared.
-Based on the information given above,what will be the amount of net assets reported in the consolidated balance sheet?

A) $1,420,000
B) $1,325,000
C) $1,250,000
D) $900,000