Question
On January 1, 2021, Palk Corp. and Spraz Corp. had condensed balance sheets as follows: Palk Corp. Spraz Corp. Current assets $ 99,000 $ 28,000
On January 1, 2021, Palk Corp. and Spraz Corp. had condensed balance sheets as follows:
Palk Corp. | Spraz Corp. | ||||||
Current assets | $ | 99,000 | $ | 28,000 | |||
Noncurrent assets | 125,000 | 56,000 | |||||
Total assets | 224,000 | 84,000 | |||||
Current liabilities | 42,000 | 14,000 | |||||
Long-term debt | 70,000 | - | |||||
Stockholders' equity | 112,000 | 70,000 | |||||
Total liabilities and stockholders' equity | $ | 224,000 | $ | 84,000 | |||
On January 1, 2021, Palk borrowed the entire $72,000 it needed to acquire 80% of the outstanding common shares of Spraz. Shares of Spraz are not actively traded on the market. The loan is to be paid in ten equal annual principal payments, plus interest, beginning December 31, 2021. The excess consideration transferred over the underlying book value of the acquired net assets was allocated 25% to inventory and 75% to goodwill.
What is the amount attributable to consolidated noncurrent assets at January 1, 2021?
Select one:
a. $196,000.
b. $223,000.
c. $218,500.
d. $181,000.
e. $190,500.
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