Palmer Corp

question 114

Multiple Choice

Palmer Corp. owned 80% of the outstanding common stock of Creed Inc. On January 1, 2019, Palmer acquired a building with a ten-year life for $450,000. No salvage value was anticipated and the building was to be depreciated on the straight-line basis. On January 1, 2021, Palmer sold this building to Creed for $412,000. At that time, the building had a remaining life of eight years but still no expected salvage value. For consolidation purposes, what is the Excess Depreciation (ED entry) for this building for 2021?

• A) Option A.
• B) Option B.
• C) Option C.
• D) Option D.
• E) Option E.

Understand how to calculate and interpret labor efficiency variances.

Learn to calculate and analyze variable overhead rate and efficiency variances.

Master the calculation and analysis of materials price variances.

Master the calculation and analysis of materials quantity variances.

---

Definitions:

Lucky Charms

A brand of breakfast cereal produced by General Mills, characterized by its marshmallow shapes; colloquially, it can also refer to objects or symbols considered to bring good luck.

Skinner

B.F. Skinner, an American psychologist known for his work in behaviorism and for developing the theory of operant conditioning.

Pigeons

Birds that are often found in urban areas, known for their ability to find their way home over long distances, used in research for studying navigation and behavior.

Critical Thinking

Analytical thinking aimed at assessing the validity of information to make logical conclusions.