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    Advanced Accounting: Eliminating Debt Kordel Inc.

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    Kordel Inc. acquired 75% of the outstanding common stock of Raxston Corp. Raxston currently owes Kordel $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be eliminated?

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    Raxston Corp has a payable for inventory of $500,000. Kordel has ...

    Solution Summary

    Tutorial shows the eliminating entry and the reasons that debt is reduced and by what amount.