Use the Following Information for Questions 35 and 36

question 158

Multiple Choice

Use the following information for questions 35 and 36.
During 2014 Carne Corporation transferred inventory to Nolan Corporation and agreed to repurchase the merchandise early in 2015. Nolan then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Carne. In 2015 when Carne repurchased the inventory, Nolan used the proceeds to repay its bank loan.
-On whose books should the cost of the inventory appear at the December 31, 2014 balance sheet date?

• A) Carne Corporation
• B) Nolan Corporation
• C) Norwalk Bank
• D) Nolan Corporation, with Carne making appropriate note disclosure of the transaction

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Definitions:

Sleep Spindles

Short bursts of brain activity that occur during stage 2 of non-REM sleep, thought to play a role in learning and memory.

K-complexes

Brainwaves seen in stage 2 sleep that are characterized by a brief and well-defined downward deflection followed by an upward component.

N1 Sleep

The initial stage of the sleep cycle, representing the transition from wakefulness to sleep, characterized by light sleep and reduced sensory awareness.

N2 Sleep

A stage of sleep characterized by sleep spindles and K-complexes, representing a deeper level of sleep than N1 and preceding the transition to deeper, delta-wave N3 sleep.