Reference no: EM132749595

Question - Pax Company acquired 80% of the outstanding voting stock of Sax Company on January 2, 20x1, for $190,000. Balance sheets for Pax and Sax Companies immediately after the stock acquisitions were as follows:

	Pax Company	Sax Company
Current assets	$110,000	$60,000
Investment in Sax Company	190,000	-0-
Property, plant, & equipment	350,000	140,000
Patents and copyrights	25,000	70,000
Total assets	$675,000	$270,000
Current liabilities	$68,000	$30,000
Bonds payable	-0-	20,000
Common stock	300,000	100,000
Other contributed capital	140,000	40,000
Retained earnings	167,000	80,000
Total liab. & stockholders' equity	$675,000	$270,000

Sax Company owed Pax Company $8,000 on open account on the date of acquisition. On the consolidated balance sheet, what amount will appear for current assets?

a. $110,000

b. $170,000

c. $178,000

d. $162,000