Figure:
Prior to Being United in a Business Combination, Botkins

Multiple Choice

Figure:
Prior to being united in a business combination, Botkins Inc. and Volkerson Corp. had the following stockholders' equity figures: $\begin{array}{lrrrr} & {\text { Botkins }} & & \text { Volkerson } \\\text { Common stock (\$1 par value) } & \$ 220,000 & & \$ 54,000 \\\text { Additional paid-in capital } & 110,000 & & 25,000 \\\text { Retained earnings } & 360,000 & & 130,000\end{array}$ Botkins issued 56,000 new shares of its common stock valued at $3.25 per share for all of the outstanding stock of Volkerson.
-Chapel Hill Company had common stock of $350,000 and retained earnings of $490,000. Blue Town Inc. had common stock of $700,000 and retained earnings of $980,000. On January 1, 2011, Blue Town issued 34,000 shares of common stock with a $12 par value and a $35 fair value for all of Chapel Hill Company's outstanding common stock. This combination was accounted for as an acquisition. Immediately after the combination, what was the consolidated net assets?

A) $2,520,000.
B) $1,190,000.
C) $1,680,000.
D) $2,870,000.
E) $2,030,000.