On January 2, 2017, NIU Purchased 80% of Huskie Corp

question 81

Multiple Choice

On January 2, 2017, NIU purchased 80% of Huskie Corp. for $128,000. The book value of the Huskie's assets is $120,000, and the book value of its liabilities is $60,000. The fair market value of the net assets is $80,000. Inventory is recorded in Huskie's financial statements at $20,000, but has a fair market value of $30,000. NIU should report inventory at

• A)$20,000.
• B)$25,000.
• C)$30,000.
• D)cannot determine from information given.

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Definitions:

David Rosenhan

A psychologist best known for his study "On Being Sane in Insane Places," which challenged the validity of psychiatric diagnoses.

Depressed and Anxious

Experiencing symptoms of depression and anxiety, often characterized by persistent sadness and worry.

Reifying a Diagnosis

The act of treating an abstract diagnosis or concept as if it were a concrete, tangible object.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized classification of mental disorders used by mental health professionals.