Milton Co Owned All of the Voting Common Stock of Walker

question 74

Multiple Choice

Milton Co. owned all of the voting common stock of Walker Co. On January 3, 2020, Milton sold equipment to Walker for $140,000. The equipment cost Clemente $165,000. At the time of the transfer, the balance in accumulated depreciation was $45,000. The equipment had a remaining useful life of five years and a $0 salvage value. Both entities use the straight-line method of depreciation.At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet dated December 31, 2020?

• A) $96,000.
• B) $120,000.
• C) $140,000.
• D) $144,000.
• E) $165,000.

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Definitions:

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a feeling of contempt for other cultures.

Multicultural Competence

The capability to understand, communicate with, and effectively interact with people across cultures.

Diversity

The inclusion and representation of different groups of people, embracing various backgrounds, cultures, perspectives, and experiences.

Egalitarianism

A belief in the equality of all people, advocating for equal rights, opportunities, and treatment across different dimensions such as gender, religion, and ethnicity.