On January 1, 2013, Chapel Hill Company had Common Stock and Paid-In Capital of $850,000 and Retained Earnings of $120,000. Blue Town Inc. had Common Stock and Paid-In Capital of $1,800,000 and Retained Earnings of $630,000.
On January 1, 2013, Blue town issued 45,000 shares of common stock with a $1 par value and a $38 market value for all of Chapel Hill Company's outstanding common stock.
Immediately after the combination, what is consolidated net assets?
$3,400,000
$4,140,000
$2,430,000
$5,065,000
$5,110,000