Problem

Jordan, Inc., holds 75 percent of the outstanding stock of Paxson Corporation. Paxson curr...

Jordan, Inc., holds 75 percent of the outstanding stock of Paxson Corporation. Paxson currently owes Jordan $400,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be eliminated?

a. –0–.

b. $100,000.

c. $300,000.

d. $400,000.

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