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On January 1, 2016 , Pent Company and Shelter Company had condensed balance sheets as follows: Pent Shelter Current assets $210,00 $60,000 Noncurrent assets 270,000

On January 1, 2016, Pent Company and Shelter Company had condensed balance sheets as follows:

Pent

Shelter

Current assets

$210,00

$60,000

Noncurrent assets

270,000

120,000

Total assets

$480,000

$180,000

Current liabilities

$90,000

$30,000

Long-term debt

150,000

-0-

Stock holders' equity

240,000

150,000

Total liabilities & stockholders' equity

$480,000

$180,000

On January 2, 2016 Pent borrowed $180,000 and used the proceeds to purchase 90% of the outstanding common stock of Shelter. 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 Pent's January 2, 2016 consolidated balance sheet, noncurrent assets should be:

a) $390,000.
b) $402,000.
c) $408,000.
d) $440,000
explain how you get the answer.

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