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:

Kübler-Ross' Stages

A theory introduced by Elisabeth Kübler-Ross detailing five stages of grief: denial, anger, bargaining, depression, and acceptance.

Prolonged Grief

An extended period of intense sorrow, mourning, and adjustment following a significant loss, beyond the norm of cultural expectations.

Psychological Disorders

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Euthanasia

The practice of intentionally ending a life to relieve pain and suffering; it can be voluntary, non-voluntary, or involuntary.