Use the Following Information to Solve the Following Questions

question 97

Multiple Choice

Use the following information to solve the following questions:
During 2020 Ebert Corp. transferred inventory to Siskel Corp. and agreed to repurchase the merchandise early in 2021. Siskel then used the inventory as collateral to borrow from Southern Bank, remitting the proceeds to Ebert. In 2021 when Ebert repurchased the inventory, Siskel used the proceeds to repay its bank loan.
-On whose books should the cost of the inventory appear at the December 31, 2020, statement of financial position date?

• A) Siskel Corp.
• B) Ebert Corp.
• C) Southern Bank
• D) Siskel Corp., with Ebert Corp. making appropriate note disclosure of the transaction

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Definitions:

Incentive

A thing that motivates or encourages someone to do something, often a reward that induces positive or desired behavior.

External Stimulus

An event or factor outside the body that influences an individual's physiological or psychological response.

Drive-Reduction

A psychological theory that posits the reduction of physiological needs drives behavior, aiming to reduce the state of tension or arousal caused by unmet needs.

Homeostasis

The process by which a living organism or cell maintains stable internal conditions despite changes in its external environment.