Daniels Inc

question 46

Multiple Choice

Daniels Inc. acquired 85% of the outstanding common stock of Noyce Corp.in 2021. Noyce currently owes Daniels $400,000 for inventory acquired during 2022. In preparing consolidated financial statements for 2022, what amount of Noyce's liability should be eliminated?

• A) $0.
• B) $60,000.
• C) $300,000.
• D) $340,000.
• E) $400,000.

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Definitions:

Isostatic Rebound

The rise of land masses after the removal of the weight of ice sheets or glaciers, a process of Earth’s crust returning to its equilibrium position over geological time scales.

West Antarctica

The portion of Antarctica that lies west of the Transantarctic Mountains, known for its ice sheets and dynamic glacial activity.

Global Sea Levels

Refers to the average height of the ocean's surface between the high and low tide, which has been rising due to climate change.

Isostatic Rebound

The rise of land masses that were depressed by the huge weight of ice sheets during the last glacial period, leading to adjustments in the Earth's crust.