Question
PAM Inc. holds 75% of the outstanding common stock of Sam Corp. Sam currently owes PAM $500,000 for inventory acquired over the past few months.
PAM Inc. holds 75% of the outstanding common stock of Sam Corp. Sam currently owes PAM $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be eliminated?
| a. | $300,000 | |
| b. | $125,000 | |
| c. | $375,000 | |
| d. | $500,000 | |
| e. | $0 |
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Structured Edp Auditing
Authors: Gabriel Rothberg
1st Edition
0534979319, 978-0534979317
