Question - Mr. Wilson own 100% of the common stock of ABC Corp. and 80% of the common stock of DEF Corp. ABC previously paid $6,000 for the remaining 20% interest in DEF. The condensed December 31, year 1 balance sheets of ABC and DEF are as follows:

ABC DEF

Assets $500,000 $50,000

Liabilities $200,000 $20,000

Common stock $140,000 $10,000

Retained earnings $160,000 $20,000

$500,000 $50,000

In a combined balance sheet of the two corporations at December 31, year 1, what amount should be reported as total stockholders' equity?

a. $430,000

b. $426,000

c. $403,000

d. $400,000