Big Guy Inc. purchased 80% of the outstanding voting shares of Humble Corp. for $360,000 on July 1, 2017. On that date, Humble Corp. had common shares and retained earnings worth $180,000 and $90,000, respectively. The equipment had a remaining useful life of 5 years from the date of acquisition. Humble's bonds mature on July 1, 2027. Both companies use straight line amortization, and no salvage value is assumed for assets. The trademark is assumed to have an indefinite useful life. Goodwill is tested annually for impairment. The balance sheets of both companies, as well as Humble's fair market values on the date of acquisition are disclosed below:

	Big Guy	Humble	Humble
	(carrying value)	(carrying value)	(fair value)
Cash	$800,000	$245,000	$245,000
Accounts Receivable	$240,000	$40,000	$40,000
Inventory	$60,000	$45,000	$50,000
Equipment (net)	$900,000	$80,000	$72,000
Trademark		$90,000	$193,000
Total Assets	$2,000,000	$500,000
Current Liabilities	$200,000	$160,000	$160,000
Bonds Payable	$260,000	$70,000	$40,000
Common Shares	$900,000	$180,000
Retained Earnings	$640,000	$90,000
Total Liabilities and Equity	$2,000,000	$500,000

The following are the financial statements for both companies for the fiscal year ended June 30, 2020: Income Statements:

	Big Guy	Humble
Sales	$640,000	$240,000
Investment Revenue	$8,480
Less: Expenses:
Cost of Goods Sold	$300,000	$160,000
Depreciation	$81,000	$34,000
Interest Expense	$34,000	$26,000
Other Expenses	$5,000	$8,000
Net Income	$228,480	$12,000

Retained Earnings Statements

	Big Guy	Humble
Balance, July 1, 2019	$960,560	$48,000
Net Income	$228,480	$12,000
Dividends	$20,000	$2,000
Balance, June 30, 2020	$1,169,040	$58,000

Balance Sheets

	Big Guy	Humble
Cash	$1,200,000	$365,000
Accounts Receivable	$270,000	$55,000
Investment in Humble	$319,040
Inventory	$70,000	$70,000
Equipment (net)	$820,000	$65,000
Trademark		$85,000
Total Assets	$2,679,040	$640,000
Current Liabilities	$350,000	$332,000
Bonds Payable	$260,000	$70,000
Common Shares	$900,000	$180,000
Retained Earnings	$1,169,040	$58,000
Total Liabilities and Equity	$2,679,040	$640,000

An impairment test conducted in September 2018 on Big Guy's goodwill resulted in an impairment loss of $10,000 being recorded. Both companies use a FIFO system, and Humble's entire inventory on the date of acquisition was sold during the following year. During 2020, Humble Inc. borrowed $20,000 in cash from Big Guy Inc. interest free to finance its operations. This loan was recorded as Accounts Payable/Accounts Receivable. Big Guy uses the Equity Method to account for its investment in Humble Corp. Assume that the fair value enterprise (FVE) method applies.

The amount of Accounts Receivable appearing on Big Guy's consolidated balance sheet as at June 30, 2020 would be:

a.$270,000.

b.$325,000.

c.$305,000.

d. $314,000.

The amount of bonds payable appearing on Big Guy's consolidated balance sheet on June 30, 2020 would be:

a.$317,800.

b.$330,000.

c.$309,000.

d.$318,000.