Question
Poe Company owns 70% of Sage Corporation's outstanding common stock. On May 1, 20x5, Poe advanced Sage $80,000 in cash, the debt of which was
Poe Company owns 70% of Sage Corporation's outstanding common stock. On May 1, 20x5, Poe advanced Sage $80,000 in cash, the debt of which was still outstanding at December 31, 20x5. What portion of this advance (if any) should be eliminated in the preparation of the 12/31/x5 consolidated balance sheet?
a.$24,000
b.$56,000
c.$80,000
d.$0
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Forensic Accounting And Fraud Examination
Authors: Paul Barnes
1st Edition
1118454138, 978-1118454152
