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

question 86

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

---

Definitions:

Circulatory

Pertaining to the circulation, especially the movement of blood through the heart and blood vessels.

Congestive Heart Failure

A chronic condition where the heart doesn't pump blood as well as it should, leading to symptoms like shortness of breath, edema, and fatigue.

Leukemia

A type of cancer that affects the blood and bone marrow, characterized by the overproduction of abnormal white blood cells.

Respiratory

Pertaining to or affecting respiration or the organs involved in breathing.