The question asks for the current assets after acquisition - when acquiring the acquiree’s assets should go on the acquirers B/S as a NON CURRENT asset right? Anyone else put ‘A’ for this…explanations? Am i wrong? Or is the above only applicable to Equity method when you would simply add an ‘Investment Account’ as the non current asset?
current assets become current assets in acquisition method. a non-current asset, as you have pointed out above is created in the equity method.