The Following Information Applies to Questions 41-45

question 41

Multiple Choice

The following information applies to Questions 41-45
On January 1, 20X6, Polka Co. (Polka) and Strauss Co. (Strauss) had condensed balance sheets as follows:
On January 2, 20X6, Polka borrowed $90,000 and used the proceeds to acquire 90% of the outstanding common shares of Strauss. This debt is payable in ten equal annual principal and accrued interest payments beginning December 30, 20X6. On the acquisition date, the fair value of Strauss was $100,000, and the excess cost of the investment over Strauss's carrying amount of acquired net assets should be allocated 60% to inventory and 40% to goodwill.
-Noncurrent assets on the January 2,20X6,consolidated balance sheet should be:

• A) $130,000
• B) $150,000
• C) $134,000
• D) $136,000

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Definitions:

Subcortical Structures

Components of the brain located below the cerebral cortex, involved in various functions including emotion, pleasure, and hormone production.

Forebrain

The anterior part of the brain, including the cerebrum and diencephalon, responsible for complex behaviors and cognitive functions.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for quick action in emergencies; the "fight or flight" response system.

Parasympathetic Nervous System

Part of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles.