please explain how the answer is 586,667

thank you.

Show all work please

3.1) On January 1, 2016, Pell Company and Sand Company had condensed balance sheets as follows: Current assets Noncurrent assets Total assets Pell Sand $ 280,000 $80,000 360,000 160,000 $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, noncurrent assets should be: @ $520,000 b) $536,000. c) $544,000. d) $586,667