Stroud Corporation Is an 80%-Owned Subsidiary of Pennie, Inc

question 37

Multiple Choice

Stroud Corporation is an 80%-owned subsidiary of Pennie, Inc., acquired by Pennie several years ago. On January 1, 20X2, Pennie sold land with a book value of $60,000 to Stroud for $90,000. Stroud resold the land to an unrelated party for $100,000 on September 26, 20X3. The land will be included in the December 31, 20X2 consolidated balance sheet of Pennie, Inc. and Subsidiary at ____.

• A)$48,000
• B)$60,000
• C)$72,000
• D)$90,000

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, triggers a conditioned response.

Sound Of Tone

The auditory perception of a specific frequency or quality of sound, often related to music or speech.