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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
On January 1, Park Corporation and Strand Corporation had condensed balance
sheets as follows:
Park
Strand
$ 116,000
$ 31,300
49,200
Current assets
Noncurrent assets
107,500
Total assets
$ 223,500
$ 80,500
$ 52,500
66,000
105,000
Current liabilities
$ 30,500
Long-term debt
Stockholders' equity
50,000
Total liabilities and equities
$ 223,500
$ 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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffb9455e9-1b75-42ab-87bf-b8a6d9f2482d%2Faed2f21c-0df6-4b8c-bb71-925e66e2f733%2Fo4k6ms7_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On January 1, Park Corporation and Strand Corporation had condensed balance
sheets as follows:
Park
Strand
$ 116,000
$ 31,300
49,200
Current assets
Noncurrent assets
107,500
Total assets
$ 223,500
$ 80,500
$ 52,500
66,000
105,000
Current liabilities
$ 30,500
Long-term debt
Stockholders' equity
50,000
Total liabilities and equities
$ 223,500
$ 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?
Transcribed Image Text:Multiple Choice
$83,000.
$52,500.
$90,040.
$113,500.
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