Current liabilities should be

a. $50,000

b. $46,000

c. $40,000

d. $30,000 Items are based on the following:
On January 1, 2011, Polk Corp. and Strass Corp. had condensed balance sheets as follows:
Polk Strass 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 stockholders’ equity $160,000 $60,000 On January 2, 2011, Polk borrowed $60,000 and used the proceeds to purchase 90% of the outstanding common shares of Strass. This debt is payable in ten equal annual principal payments, plus interest, beginning December 30, 2011. The excess cost of the investment over Strass’ book value of acquired net assets should be allocated 60% to inventory and 40% to goodwill. On January 1, 2011, the fair value of Polk shares held by noncontrolling parties was $10,000.
On Polk’s January 2, 2011 consolidated balance sheet.