What was the total of the current assets

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Question - Apex Company acquired 80% of the outstanding stock of Nadir Company. The separate balance sheet of Apex immediately after the acquisition and the consolidated balance sheet are as follows:

 

Apex

Consolidated

Current assets

$106,000

$146,000

Investment in Nadir (cost)

100,000

-0-

Property, plant, & equipment

270,000

363,000

Goodwill

-0-

5,000

Total assets

$476,000

$514,000

Current liabilities

$15,000

$28,000

Non-controlling interest

-0-

25,000

Common stock

350,000

350,000

Retained earnings

111,000

111,000

Total liabilities & stockholders' equity

$476,000

$514,000

Current assets of Nadir included a $2,000 receivable from Apex which arose before they became related on an ownership basis. Accordingly, what was the total of the current assets on Nadir's separate balance sheet at the time Apex acquired its 80% interest?

a. $44,000

b. $42,000

c. $40,000

d. $38,000

Reference no: EM132749591

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