Reference no: EM132690986
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
Noncontrolling interest -0- 25,000
Common stock 350,000 350,000
Retained earnings 111,000 111,000
Total liabilities & stockholders' equity $476,000 $514,000
Problem 1: 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
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