P CorpOwns 90% of the Outstanding Common Stock of S Company

question 9

Multiple Choice

P Corp.owns 90% of the outstanding common stock of S Company.On December 31, 2014, S sold equipment to P for an amount greater than the equipment's book value but less than its original cost.The equipment should be reported on the December 31, 2014 consolidated balance sheet at

• A)P's original cost less 90% of S's recorded gain.
• B)P's original cost less S's recorded gain.
• C)S's original cost.
• D)P's original cost.

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Definitions:

Delegated

Pertains to the transfer of authority or responsibility from one entity or person to another, often seen in organizational or governmental contexts.

Express Provision

A specific clause in a contract or legal document that explicitly states an agreement or condition.

Contract

A contract is a legally enforceable agreement between two or more parties that is bound by mutual consent and consideration.

Assignments

The process of transferring rights or duties from one party to another, often used in contracts, leases, or in the context of educational tasks.