In January 2014, S Company, an 80% Owned Subsidiary of P

question 14

Multiple Choice

In January 2014, S Company, an 80% owned subsidiary of P Company, sold equipment to P Company for $990,000. S Company's original cost for this equipment was $1,000,000 and had accumulated depreciation of $100,000. P Company continued to depreciate the equipment over its 9 year remaining life using the straight-line method. This equipment was sold to a third party on January 1, 2017 for $720,000. What amount of gain should P Company record on its books in 2017?

• A) $30,000.
• B) $60,000.
• C) $120,000.
• D) $180,000.

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Definitions:

Temple's Granaries

Storage spaces or buildings associated with ancient temples used for holding grain supplies.

Burials

The act of placing the dead into the ground, a tomb, or another designated place, often with ceremonial or ritual significance.

Eurasia

A large landmass comprising both Europe and Asia, characterized by diverse cultures, climates, and geopolitical entities.

Bronze

An alloy of copper and tin, often used in tools, weapons, and sculptures in ancient times.