Parent Corporation Purchased Land from S1 Corporation for $220,000 on December

question 42

Multiple Choice

Parent Corporation purchased land from S1 Corporation for $220,000 on December 26, 20X8. This purchase followed a series of transactions between P-controlled subsidiaries. On February 15, 20X8, S3 Corporation purchased the land from a nonaffiliate for $160,000. It sold the land to S2 Company for $145,000 on October 19, 20X8, and S2 sold the land to S1 for $197,000 on November 27, 20X8. Parent has control of the following companies: Parent reported income from its separate operations of $200,000 for 20X8.
Based on the preceding information, at what amount should the land be reported in the consolidated balance sheet as of December 31, 20X8?

• A) $145,000
• B) $220,000
• C) $197,000
• D) $160,000

Understand the principles of insurance risk rating and their impact on healthcare pricing and access.

Understand the principle of computing inventory value at the lower of cost or market.

Understand the method of calculating the ending inventory using average cost.

Comprehend how to calculate ending inventory using specific valuation methods such as LIFO.

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Definitions:

Neural Impulses

Electrical signals that travel along neurons, facilitating communication within the nervous system.

Receptor Cells

Specialized cells that respond to specific kinds of energy, such as light, sound, or chemicals, and convert them into neural signals.

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain, enabling sight.

Iris

The colored part of the eye that controls the size of the pupil and thus the amount of light that enters the eye.