On January 1, 2011, Pena Company and Shelby Company have condensed balanced shee

Question

On January 1, 2011, Pena Company and Shelby Company have condensed balanced sheets as follows: On January 2, 2011 Pena borrowed $180,000 and used the proceeds to purchase 90% of the outstanding common stock of Shelby. This debt is payable in 10 equal annual principal payments, plus interest, starting December 30, 2011. Any difference between book value and the value implied by the purchase price relates to land. On Pena's January 2, 2011 consolidated balance sheet, Noncurrent liabilities should be: (Points : 4) $330,000. $312,000. $180,000. $162,000.

Explanation / Answer

$162,000.

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