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Kordel Inc

Question 105

Multiple Choice

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 this debt should be eliminated?


A) $375,000
B) $125,000
C) $300,000
D) $500,000
E) $0

Correct Answer:

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