On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand $ 116,000 107,500 $ 31,300 49,200 Current assets Noncurrent assets $ 223,500 $ 52,500 66,000 105,000 $ 223,500 $ 80,500 $ 30,500 Total assets Current liabilities Long-term debt Stockholders' equity 50,000 Total liabilities and equities $ 80,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for current liabilities?

On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand $ 116,000 107,500 $ 31,300 49,200 Current assets Noncurrent assets $ 223,500 $ 52,500 66,000 105,000 $ 223,500 $ 80,500 $ 30,500 Total assets Current liabilities Long-term debt Stockholders' equity 50,000 Total liabilities and equities $ 80,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for current liabilities?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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