On January 1, 2024 Palk Corp. and Spraz Corp. had condensed balance sheets as follows:Current assetsPalk Corp. Spraz Corp.$ 99,000 $28,000125,000 56,000Noncurrent assetsTotal assetsCurrent liabilitiesLong-term debt224,000 84,00042,000 14,00070,00070,000Time left 3:54:49Stockholders' equity112,000Total liabilities and stockholders' equity $224,000 $ 84,000On January 1, 2024, Palk borrowed the entire $72,000 it needed to acquire 80% of the outstanding commonshares of Spraz. Sha4res of Spraz are not actively traded on the market. The loan is to be paid in ten equalannual principal payments, plus interest, beginning December 31, 2024. The excess consideration transferredover 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. $196,000O b. $181,000Oc $223,000Od. $218,500O e. $194,000

Detailed explanation: The amount attributable to consolidated noncurrent assets at January 1, 2024…

Answered: On January 1, 2024 Palk Corp. and Spraz…

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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