Subsidiary Corporation Purchases a Used Machine from Parent Corporation in an Intercompany

question 77

Multiple Choice

Subsidiary Corporation purchases a used machine from Parent Corporation in an intercompany transaction. Which of the following events is a corresponding event for the intercompany transaction?

• A)the purchasing group member depreciating the machine
• B)the purchasing group member selling the machine for cash to a nonmember of the group
• C)the departure of the purchasing group member from the affiliated group when its stock is sold to a nonmember of the group
• D)All of the above are recognition events.

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Definitions:

Private Prison Provider

A company or organization that operates prisons on behalf of the government but is privately owned and profit-driven.

Privatization

The process of transferring ownership or operation, particularly of public services or assets, to private sector entities.

Symbolism

Involves the use of symbols to represent ideas or qualities in literature, art, and other forms of expression.

Public Nature

Characteristics or attributes that are not private, belonging to or affecting the community or society at large.