The following data applies to Questions 29-33 On January 1, 20X6, Polka Co. (Polka) and Strauss Co. (Strauss) had condensed balance sheets as follows:

	Polka	Strauss
Current assets	$70,000	$20,000
Noncurrent assets	$90,000	$40,000
Current liabilities	$30,000	$10,000
Long-term debt	$50,000	$0
Stockholders equity	$80,000	$50,000

On January 2, 20X6, Polka borrowed $90,000 and used the proceeds to acquire 90% of the outstanding common shares of Strauss. This debt is payable in ten equal annual principal and accrued interest payments beginning December 30, 20X6. On the acquisition date, the fair value of Strauss was $100,000, and the excess cost of the investment over Strausss carrying amount of acquired net assets should be allocated 60% to inventory and 40% to goodwill. (Note: This is a Kaplan CPA Review Questions)

28-29. Current assets on the January 2, 20X6, consolidated balance sheet should be:

A. $79,000

B. $120,000

C. $90,000

D. $96,000

29-30. Noncurrent assets on the January 2, 20X6, consolidated balance sheet should be:

A. $130,000

B. $150,000

C. $134,000

D. $136,000

30-31. Current liabilities on the January 2, 20X6, consolidated balance sheet should be:

A. $49,000

B. $30,000

C. $40,000

D. $50,000

31-32. Noncurrent liabilities on the January 2, 20X6, consolidated balance sheet should be:

A. $109,000

B. $55,000

C. $104,000

D. $131,000

32-33. Stockholders equity on the January 2, 20X6, consolidated balance sheet should be:

A. $85,000

B. $80,000

C. $90,000

D. $130,000