Using the acquistion method to account for the acquisition, what will be the post-acquisition current assets of TME? A. $105,000. B. $118,000. C. $93,000.
Using the acquisition basis of accounting, the post-acquisition level of the current assets is the amount of the current assets prior to acquisition minus the amount of cash used for the acquisition. ($80,000 + 38,000 – 25,000) = $93,000.
