On January 1, 2016, P Corporation Sold Equipment with a 3-Year

question 6

Multiple Choice

On January 1, 2016, P Corporation sold equipment with a 3-year remaining life and a book value of $40,000 to its 70% owned subsidiary for a price of $46,000. In the consolidated workpapers for the year ended December 31, 2017, an elimination entry for this transaction will include a:

• A) debit to Equipment for $6,000.
• B) debit to Gain on Sale of Equipment for $6,000.
• C) credit to Depreciation Expense for $6,000.
• D) debit to Accumulated Depreciation for $4,000.

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Definitions:

Mood Disorders

A category of mental health disorders characterized by significant disturbances in an individual’s mood, such as depression or bipolar disorder.

Bipolar Disorders

Psychiatric conditions characterized by significant shifts in mood, energy, and activity levels, ranging from manic highs to depressive lows.

Depressive Disorders

A group of conditions characterized by persistent feelings of sadness and worthlessness and a lack of desire to engage in previously enjoyable activities.

Depressive Disorder

A category of mood disorders characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.