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In January 2013, S Company, an 80% Owned Subsidiary of P

question 23

Multiple Choice

In January 2013, S Company, an 80% owned subsidiary of P Company, sold equipment to P Company for $1,980,000. S Company's original cost for this equipment was $2,000,000 and had accumulated depreciation of $200,000. 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 $1,440,000. What amount of gain should P Company record on its books in 2017?

Translate real-world scenarios into mathematical equations to solve for unknown variables.

Understand the relationship between equations, their graphs, and the solutions to the equations.

Develop critical thinking skills to verify mathematical solutions in context.

Apply mathematical skills to understand economic transactions in everyday life.

Definitions:

Disjunctive

Relating to or involving a choice between mutually exclusive possibilities or a situation that requires a selection to be made from among such possibilities.

Injunctive

Pertaining to an order or directive issued by an authority, often legal in nature, requiring specific actions to be taken or avoided.

Adjunctive

Supplementary or additional to something rather than being an essential part; often used in the context of treatments or activities that support a primary objective.

Conjunctive

Serving to connect or combine items logically, typically used in reference to words or phrases.