A Parent Entity Sold a Depreciable Non-Current Asset to a Subsidiary

question 5

Multiple Choice

A parent entity sold a depreciable non-current asset to a subsidiary entity for $5600. The asset originally cost $6000 and at the date of sale accumulated depreciation was $1000. The amount of the unrealised gain on sale to be eliminated is:

• A) $5600.
• B) $1000.
• C) $600.
• D) $400.

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Definitions:

Bestialists

People who have sexual contact with animals but are not concerned with the animals’ welfare.

Necrophiles

Individuals who have a sexual attraction to corpses.

Pedophiles

Individuals who are primarily attracted to prepubescent children, a condition that is considered a psychiatric disorder.

Exhibitionists

Individuals who experience a sexual urge or gain gratification by exposing their genitals to unsuspecting strangers.