5On January 1, 2016, Pell Company and Sand Company had condensed balance sheets as follows: On January 2, 2016 Pell borrowed $240,000 and used the proceeds to purchase 90% of the outstanding common stock of Sand. This debt is payable in 10 equal annual principal payments, plus interest, starting December 30, 2016. Any difference between book value and the value implied by the purchase price relates to land. should be: Pell s 280,000 360,000 Sand $80,000 160,000 Current assets Noncurrent assets Total assets $0000$240.000 $40,000 $ 120,000 Current liabilities Long-term debt Stockholders' equity Total liabilities & stockholders' equity 200,000 200,000 320,000 S240000 S640000 Minimized View M $520,000. M $536,000 m $544,000. M $586,667. 5On January 1, 2016, Pell Company and Sand Company had condensed balance sheets as follows: On January 2, 2016 Pell borrowed $240,000 and used the proceeds to purchase 90% of the outstanding common stock of Sand. This debt is payable in 10 equal annual principal payments, plus interest, starting December 30, 2016. Any difference between book value and the value implied by the purchase price relates to land. should be: Pell s 280,000 360,000 Sand $80,000 160,000 Current assets Noncurrent assets Total assets $0000$240.000 $40,000 $ 120,000 Current liabilities Long-term debt Stockholders' equity Total liabilities & stockholders' equity 200,000 200,000 320,000 S240000 S640000 Minimized View M $520,000. M $536,000 m $544,000. M $586,667