Use the Following Information to Answer Question(s) Below

question 7

Multiple Choice

Use the following information to answer question(s) below.

On January 1, 2014, Punch Corporation purchased 80% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date (after the acquisition) are given below:

-What amount of Inventory will be reported?

• A)$170,000
• B)$169,000
• C)$186,500
• D)$192,000

---

Definitions:

Investigate

To carry out a systematic or formal inquiry to discover and examine the facts of an issue, so as to establish the truth.

Void After 90 Days

A phrase typically used on checks or legal documents indicating that the document or check is no longer valid if not used or cashed within 90 days from its date of issuance.

Stop Payment

A directive issued to a bank for the termination of a check or payment still pending processing.

Check Truncation

The process of converting a physical check into a digital form for electronic processing and payment.