A Subsidiary Company Sells a Depreciable Asset to Its Parent

question 9

Multiple Choice

A subsidiary company sells a depreciable asset to its parent at a profit after tax of $5 000.The parent depreciates the asset at 20% per annum upon transfer.in the 5th year after the transfer,the unrealised profit from the transfer is:

• A)$500
• B)$2 000
• C)$1 000
• D)$0

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Definitions:

Standard Deviation

A metric quantifying the extent of difference or scatter among a group of figures.

Blackjack

A casino card game where players aim to get a card total as close to 21 as possible without exceeding it.

Discrete

Referring to data that can take on only integer values and which are countable.

Continuous

A type of variable or data that can take an infinite number of values within a given range or interval.