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:

Dyslexia

A reading disorder characterized by problems such as letter reversals, mirror reading, slow reading, and reduced comprehension (from the Greek roots dys, meaning “bad,” and lexikon, meaning “of words”).

Word Recognition

The ability to identify and understand written words accurately and efficiently.

Decoding

The process of interpreting or understanding information from coded data or a message.

Average Yearly Weight

The mean weight gain or loss of an individual or population over the course of a year, commonly used in health and fitness assessments.