Assignment:
On January 1, 2014, Palk Corp. and Spraz Corp. had condensed balance sheets as follows:
On January 2, 2014, Palk borrowed the entire $84,000 it needed to acquire 80% of the outstanding common shares of Spraz. The loan was to be paid in ten equal annual principal payments, plus interest, beginning December 31, 2014. The excess consideration transferred over the underlying book value of the acquired net assets was allocated 60% to inventory and 40% to goodwill.
What is consolidated current assets at January 2, 2014?
A. $148,000
B. $127,000
C. $135,400
D. $129,800
E. $143,800
Pak Corp. Spraz Cop. 99,000 28,000 Current assets Noncurrent assets 125,000 56,000 224,000 S 84,000 Total assets 42,000 14000 Current liabilities 70,000 Long-term debt Stockholders' equity 112.000 70,000 Total liabilities and stockholders' equity 224,000 84,000.