Note: This Is a Kaplan CPA Review Question

question 30

Multiple Choice

Note: This is a Kaplan CPA Review Question
On January 1, 20X1, Poe Corp. sold a machine for $900,000 to Saxe Corp., its wholly-owned subsidiary. Poe paid $1,100,000 for this machine, which had accumulated depreciation of $250,000. Poe estimated a $100,000 salvage value and depreciated the machine on the straight-line method over 20 years, a policy which Saxe continued. In Poe's December 31, 20X1, consolidated balance sheet, this machine should be included in cost and accumulated depreciation as:

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Controlled by Courts

Refers to legal matters or procedures directly overseen or managed by judicial authorities.

Certified Union

A labor organization officially recognized to represent and negotiate on behalf of employees in a specific workplace or industry.

Bargaining Unit

A group of employees who have been certified.

Employment Standards Act

Legislation outlining the minimum standards of employment, including wages, working hours, leaves, and termination procedures, among other worker rights.