On January 1, 2024 Palk Corp. and Spraz Corp. had condensed balance sheets as follows: Current assets Palk Corp. Spraz Corp. $ 99,000 $28,000 125,000 56,000 Noncurrent assets Total assets Current liabilities Long-term debt 224,000 84,000 42,000 14,000 70,000 70,000 Time left 3:54:49 Stockholders' equity 112,000 Total liabilities and stockholders' equity $224,000 $ 84,000 On January 1, 2024, Palk borrowed the entire $72,000 it needed to acquire 80% of the outstanding common shares of Spraz. Sha4res 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, 2024. The excess consideration transferred over the underlying book value of the acquired net assets was allocated 35% to inventory and 65% to goodwill. What is the amount attributable to consolidated noncurrent assets at January 1, 2024? O a. $196,000 O b. $181,000 Oc $223,000 Od. $218,500 O e. $194,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
On January 1, 2024 Palk Corp. and Spraz Corp. had condensed balance sheets as follows:
Current assets
Palk Corp. Spraz Corp.
$ 99,000 $28,000
125,000 56,000
Noncurrent assets
Total assets
Current liabilities
Long-term debt
224,000 84,000
42,000 14,000
70,000
70,000
Time left 3:54:49
Stockholders' equity
112,000
Total liabilities and stockholders' equity $224,000 $ 84,000
On January 1, 2024, Palk borrowed the entire $72,000 it needed to acquire 80% of the outstanding common
shares of Spraz. Sha4res 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, 2024. The excess consideration transferred
over the underlying book value of the acquired net assets was allocated 35% to inventory and 65% to goodwill.
What is the amount attributable to consolidated noncurrent assets at January 1, 2024?
O a. $196,000
O b. $181,000
Oc $223,000
Od. $218,500
O e. $194,000
Transcribed Image Text:On January 1, 2024 Palk Corp. and Spraz Corp. had condensed balance sheets as follows: Current assets Palk Corp. Spraz Corp. $ 99,000 $28,000 125,000 56,000 Noncurrent assets Total assets Current liabilities Long-term debt 224,000 84,000 42,000 14,000 70,000 70,000 Time left 3:54:49 Stockholders' equity 112,000 Total liabilities and stockholders' equity $224,000 $ 84,000 On January 1, 2024, Palk borrowed the entire $72,000 it needed to acquire 80% of the outstanding common shares of Spraz. Sha4res 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, 2024. The excess consideration transferred over the underlying book value of the acquired net assets was allocated 35% to inventory and 65% to goodwill. What is the amount attributable to consolidated noncurrent assets at January 1, 2024? O a. $196,000 O b. $181,000 Oc $223,000 Od. $218,500 O e. $194,000
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education