On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows:
| Park | Strand |
Current 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, Park borrowed $60,000 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 $60,000 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 each of the following?
Current assets:
a. $105,000.
b $102,000.
c. $100,000.
d. $90,000.
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