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:

Visual Perspicacity

The ability to observe and understand visual information with sharpness and clarity.

Optic Chiasma

The X-shaped structure formed by the crossing over of the optic nerves in the brain, which allows visual information from each eye to be processed on both sides of the brain.

Blind Spot

Area in the retina where the axons of the three layers of retinal cells exit the eye to form the optic nerve; insensitive to light.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to the high concentration of cones and absence of rods.