ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 31

d. None of these.
Use the following information for questions 35 and 36.
During 2012 Carne Corporation transferred inventory to Nolan
Corporation and agreed to repurchase the merchandise early in
2013. Nolan then used the inventory as collateral to borrow from
Norwalk Bank, remitting the proceeds to Carne. In 2013 when Carne
repurchased the inventory, Nolan used the proceeds to repay its bank
loan.
35.
This transaction is known as a(n)
a. consignment.
b. installment sale.
c. assignment for the benefit of creditors.
d. product financing arrangement.
36. On whose books should the cost of the inventory appear at the
December 31, 2012 balance sheet date?
a. Carne Corporation
b. Nolan Corporation
c. Norwalk Bank
d. Nolan Corporation, with Carne making appropriate note
disclosure of the transaction