The Balance Sheet of Mini Company Was as Follows Immediately

Multiple Choice

The balance sheet of Mini Company was as follows immediately before it was acquired by Maxi Company: Mini Company Statement of Financial P osition January 1, 20X0 $$\begin{array} { | l | r | } \hline \text { Cash } & \$ 90,000 \\\hline \text { Accounts receivable (net) } & 50,000 \\\hline \text { Inventory } & 150,000 \\\hline \text { Plant and equipment (net) } & 100,000 \\\hline \text { Total assets } & \$ 390,000 \\\hline & \\\hline \text { Accounts payable } & \$ 40,000 \\\hline \text { Notes payable } & 80,000 \\\hline \text { Common stock } & 155,000 \\\hline \text { Retained earnings } & \underline { 115,000 } \\\hline \text { Total Liabilities and Stockholders' Equity } & \$ 390,000 \\\hline\end{array}$$ On January 1, 20X0, Maxi Company paid $350,000 in cash for 100% of the outstanding common stock of Mini Company. The current market value of Mini Company's plant and equipment was $140,000 on the date of acquisition. If the market value and book value are the same for Mini's remaining assets, what is the net increase in Maxi's assets as a result of the merger with Mini?

A) $430,000
B) $470,000
C) $120,000
D) $390,000