What amount of this debt should be eliminated

Reference no: EM13152239

Kordel Inc. holds 75% of the outstanding common stock of Raxston Corp. Raxston currently owes Kordel $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be eliminated?

a) $375,000

b) $125,000

c) $300,000

d) $500,000

Reference no: EM13152239

Questions Cloud

Dispose of the overhead variance : What journal entry would you make to dispose of the overhead variance using the proration approach based on account ending total dollar balances?

Which biological processes are systems approach most useful : which biological processes are systems approach most useful and why? Which ones are have less utility and why?

Example of a payroll tax expense : Both companies will have the same net income. Which of the following is an example of a payroll tax expense incurred by the employer?

Does the movement of molecules demonstrated here : Does the movement of molecules demonstrated here involve passive or active transport, and why?

What amount of this debt should be eliminated : Kordel Inc. holds 75% of the outstanding common stock of Raxston Corp. Raxston currently owes Kordel $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be elimi..

Preventive or detective control plan : The controlled access to files, programs, and documentation is a principal responsibility of which of the following functions? 32. Which of the following personnel security control plans is corrective in nature as opposed to being a preventive or ..

Determining the consolidated net income : Without regard for this investment, Keefe earns $300,000 in net income during 2006. What is consolidated net income for 2006?

How many kilojoules of heat is required : How many kilojoules of heat is required to completely covert 70.0 grams of water at 66.0° C to steam at 100°C?

Calculate the heat energy released : calculate the heat energy released when 15.1g of liquid mercury at 25 degrees C is converted to solid mercury at its melting point

User Account

All Pages