Milton Co Owned All of the Voting Common Stock of Walker

question 101

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, 2021?

• A) $48,000.
• B) $72,000.
• C) $96,000.
• D) $145,000.
• E) $165,000.

---

Definitions:

Structuralism

A theoretical perspective in social sciences focusing on the underlying structures that determine the behavior of social phenomena rather than the phenomena themselves.

Functionalism

A sociological perspective that sees society as a complex system whose parts work together to promote solidarity and stability.

Existentialists

Existentialists are philosophers who emphasize individual freedom, choice, and personal responsibility, arguing that individuals are free to shape their own existence in an inherently meaningless world.

Sartre

Jean-Paul Sartre, a French philosopher, playwright, and critic, one of the leading figures in 20th century existentialism.