Schweser Practice Exams pg 121 Q97 only, Investment, question, current

luda002

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?

dmrktrading

current assets become current assets in acquisition method.
a non-current asset, as you have pointed out above is created in the equity method.