Use the Following Information to Answer Questions

question 6

Multiple Choice

Use the following information to answer questions
On January 1, 2013, Pent Company and Shelter Company had condensed balanced sheets as follows: On January 2, 2013 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, 2013.Any difference between book value and the value implied by the purchase price relates to land.
On Pent's January 2, 2013 consolidated balance sheet,
-Current liabilities should be

• A)$150,000.
• B)$138,000.
• C)$120,000.
• D)$90,000.

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Definitions:

Invest

The practice of assigning financial resources with the aim of receiving profits or earnings.

Gross Private Domestic Investment

The total amount of domestic capital investment in non-governmental sectors, including both non-residential and residential assets.

Producer Plant

Typically refers to a facility or set of facilities that processes raw materials or components to manufacture goods or products for sale. In some contexts, it might specifically denote a facility involved in agricultural production.

Residential Construction

The building and selling of residential buildings such as houses, apartments, and condominiums.