Concepts of consolidated financial statements

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Kordel Inc. holds 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?

a) $375,000

b) $125,000

c) $300,000

d) $500,000

Reference no: EM13130243

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