Need an explanation of why the answer is B, thank you!

On January 1, 2016, Pell Company and Sand Company had condensed balance sheets as follows:

	Pell		Sand
Current assets	$ 280,000		$80,000
Noncurrent assets	360,000		160,000
Total assets	$640,000		$240,000
Current liabilities	$ 120,000		$40,000
Long-term debt	200,000		-0-
Stockholders' equity	320,000		200,000
Total liabilities & stockholders' equity	$640,000		$240,000

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.

On Pell's January 2, 2016 consolidated balance sheet, current liabilities should be:

a) $200,000.

b) $184,000.

c) $160,000.

d) $120,000.

Answer: b