Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for 2,400,000 cash. As of that date, Solar had the following account balances:
Which of the following options best reflects the situation described?
A) Huey Company acquires 100% of Solar Corporation's stock for 2,400,000 cash on January 1, 2019.
B) Solar Corporation acquires 100% of Huey Company's stock for 2,400,000 cash on January 1, 2019.
C) Huey Company and Solar Corporation merge on January 1, 2019, with a combined stock value of 2,400,000.
D) Huey Company invests 2,400,000 in Solar Corporation on January 1, 2019, through a non-cash transaction.