Subsidiary Corporation Purchases a Used Machine from Parent Corporation in an Intercompany

question 86

Multiple Choice

Subsidiary Corporation purchases a used machine from Parent Corporation in an intercompany transaction. Which of the following events is a corresponding event for the intercompany transaction?

• A) the purchasing group member selling the machine for cash to a nonmember of the group
• B) the departure of the purchasing group member from the affiliated group when its stock is sold to a nonmember of the group
• C) the purchasing group member depreciating the machine
• D) All of the above are recognition events.

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Definitions:

Fire Insurance Policy

A contract that provides financial compensation for losses or damage to property caused by fire.

Assignable

Refers to something capable of being transferred or made over to the legal ownership of another party.

Consent

Permission for something to happen or an agreement to do something.

Key Data Executive

A senior role focused on overseeing and managing an organization's data strategy, integrity, and analytics.