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PLEASE SHOW ALL WORKS, EXPLAIN IF POSSIBLE. On January 1, 2010, Palk Corp. and Spraz Corp. had condensed balance sheets as follows: Palk Corp S
PLEASE SHOW ALL WORKS, EXPLAIN IF POSSIBLE.
On January 1, 2010, Palk Corp. and Spraz Corp. had condensed balance sheets as follows: Palk Corp S 99,000 Spraz Corp $ Current assets 28,000 Noncurrent assets 125,000 $ 56,000 Total assets 224,000 $ 84,000 Current labilities $ 42,000 $ 14,000 Long-term debt Stockholders' equity $ $ 70,000 - 112,000 S 70,000 Total liabilities and stockholders' equity $ 224,000 84,000 On January 2, 2010, 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, 2010. The excess consideration transferred over the underlying book value of the acquired net assets was allocated 60% to inventory and 40% to goodwill 24. What is consolidated current assets at January 2, 2010? A. $127,000 B. $129,800 C. $143,800 D.$148,000 E. $135,400 25. What is consolidated noncurrent assets at January 2, 2010? A. $195,000 B. $192,200 C. $186,600 D. $181,000 E. $169,800 B: Analytic AAC AICPA FN: Measurement Bloom's: Application Difficulty: Medium Learning Objective: 04-01 Understand that complete ownership is not a prerequisite for the formation of a business combination 26. What is consolidated current liabilities at January 2, 2010? A. $53,200 B. $56,000 C. $64,400 D. $42,000 E. $70,000 AACSB: Analytic AICPA FN: Measurement Bloom's: Application Difficulty: Medium Learning Objective: 04-01 Understand that complete ownership is not a prerequisite for formation of a business combination 27. What is consolidated stockholders' equity at January 2, 2010? A. $1 12,000 B. $133,000 C. $168,000 D. $182,000 E. $203,000Step by Step Solution
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