[Mathandler1]

On January 1, 2001, Polk Corporation and Strass Corporation had condensed balance sheets as follows:

Polk StrassCurrent assets $70,000 $20,000
Noncurrent assets $90,000 $40,000
Total assets $160,000 $60,000

Current liabilities $30,000 $10,000
Long-term debt $50,000 ----
Stockholders’ equity $80,000 $50,000

Total liabilities and equities $160,000 $60,000

On January 2, 2001, Polk borrowed $60,000 and used the proceeds to purchase 90% of the outstanding common shares of Strass. This debt is payable in 10 equal annual principal payments, plus interest, beginning December 31, 2001. The excess cost of the investment over the underlying book value of the acquired net assets is allocated to inventory (60%) and to goodwill (40%). On a consolidated balance sheet as of January 2, 2001,

Current assets should be: I hd chosen (b) for my answer $70K+20K+ (60K/10)
a. $99,000
b. $96,000
c. $90,000
d. $79,000
e. $70,000

Noncurrent assets should be: I Choose (a) ($90+40K)
a. $130,000
b. $134,000
c. $136,000
d. $140,000
e. $142,000

Current liabilities should be: I choose (c) ($30+10K)
a. $50,000
b. $46,000
c. $40,000
d. $30,000
e. $49,000

Noncurrent liabilities, including noncontrolling interest, should be: I choose (b)
a. $115,000
b. $109,000
c. $104,000
d. $55,000
e. $62,000

Stockholders’ equity should be: I choose (a)
a. $80,000
b. $85,000
c. $90,000
d. $130,000
e. $70,000


Is there someone out there that can confirm that I am right or not in giving this as my answer. And if not what is the correct answer. Thanks!

[Mathandler1]

The answer I turned in was (b), (a), (c), (b), (a). Is there someone out there that can confirm that I am right or not in giving this as my answer. And if not what is the correct answer. Thanks!

[Mathandler1]

Wow! I cannot believe my eyes that no one is out there that does not have his/her own thoughts regarding this question. I figure that there would be more than zero out there that would be respond with confirmation of either that I was correct or I was totally off the track with my answer. I really am interested in knowing if someone else has come up with the same asnswer as I did or with a different one. Thanks!

[J_9]

Jeeze dude, give the people TIME to answer. The people who are here are here on a voluntary basis and may not be online at this moment, considering it is a weekend they may be doing things with friends and family.

Chill out. While we do not do homework for our posters it is clear that you did do yours and you showed effort. Someone will help you when they get online.