Elm Company is considering purchasing EKC Company. EKC's balance sheet at December 31, 2019, is as follows:

Cash $ 50,000 Current liabilities $ 60,000 Accounts receivable 70,000 Bonds payable 200,000 Inventory 120,000 Common stock 300,000 Property, plant, and equipment (net) 600,000 Retained earnings 280,000 $840,000 $840,000