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:

Confidence Intervals

A range of values, derived from a data set, used to estimate the uncertainty surrounding an estimated parameter.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used for hypothesis testing and constructing confidence intervals.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, commonly denoted as alpha.

Statistically Significant

An observation or effect sufficiently large or important to be unlikely to have occurred by chance, as per a predefined threshold in hypothesis testing.