Items 1 through 10 are based on the following: On January 1, 2011, Polk Corp. and Strass Corp. had condensed balance sheets as follows:

Polk Strass

Current assets P 70,000 P20,000

Noncurrent assets90,00040,000

Total assets P160,000 P 60,000

Current liabilities P 30,000 P10,000

Long-term debt 50,000 --

Stockholders' equity 80,000 50,000

Total liabilities and stockholders' equityP160,000P60,000

On January 2, 2011, Polk borrowed P60,000 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 P10,000. On Polk's January 2, 2011 consolidated balance sheet,

1-2. Current assets should be

a. P90,000 b. P99,000 c. P100,000 d. P102,000

3-4. Noncurrent assets should be

a. P130,000 b. P136,000 c. P138,000 d. P140,000

5-6. Current liabilities should be

a. P50,000b. P46,000 c. P40,000 d. P30,000

7-8. Noncurrent liabilities should be

a. P115,000 b. P109,000 c. P104,000 d. P55,000

9-10. Stockholders' equity including noncontrolling interests should be

a. P80,000 b. P85,000c. P90,000 d. P130,000