Emron Company Owns a 100% Interest in the Common Stock

question 20

Multiple Choice

Emron Company owns a 100% interest in the common stock of the Dietz Company. On January 1, 20X2, Emron sold Dietz a fixed asset that Dietz will use over a 5-year period. The asset was sold at a $5,000 profit. In the consolidated statements, this profit will

• A)not be recorded.
• B)be recognized over 5 years.
• C)be recognized in the year of sale.
• D)be recognized when the asset is resold to outside parties at the end of its period of use.

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Definitions:

Electric Shock

A sudden discharge of electricity through a part of the body, causing a sharp and often painful sensation.

Lever Press

A method used in experimental psychology to measure an animal's behavior, particularly in operant conditioning, by recording the frequency of lever pressing by the subject.

Behaviorism

A theory in psychology that emphasizes the study of observable behaviors over internal phenomena such as thoughts and feelings.

Classical Conditioning

A learning process in which an innate response to a potent stimulus becomes triggered by a previously neutral stimulus after repeated association.