Kordel Inc. acquired 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 Raxston's liability should be eliminated?
A. $300,000.
B. $500,000.
C. $0.
D. $375,000.
E. $125,000.
Answer: B
You might also like to view...
International firms have found it necessary to institute formal global planning
A. to provide top management with a means to identify threats and opportunities worldwide. B. to eliminate the practice of informal planning. C. to promote different courses of action among the firm's managers worldwide. D. to serve as an input for scenario building.
Engelhardt, Inc, a law consulting firm, has been using a single predetermined overhead allocation rate with direct labor hours as the allocation base to allocate overhead costs
The direct labor rate is $40 per hour. Ted Heath, the president of Engelhardt, decided to develop an ABC system to accurately allocate the indirect costs. He identified two activities related to the total indirect costs-travel and information technology (IT) support. The other relevant details are given below: Activity Allocation base Estimated costs Estimated quantity of allocation base Travel Miles driven $77,000 3,500 miles IT Support Direct labor hours 55,000 1,250 DLHr Total $132,000.00 During the current month, Engelhardt's consultants spent 150 labor hours for Cunningham, Inc The job required the professionals to travel 400 miles in total. Determine the total cost of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) A) $6,000 B) $1,760 C) $6,600 D) $21,400
A registration statement requires all of the following EXCEPT:
A) financial statements certified by an independent accountant. B) description of the business. C) description of the management. D) projection of future growth potential.
Bonds are typically a good investment choice for an individual who is seeking long-term preservation of capital
Indicate whether the statement is true or false.