An Intra-Entity Transfer of a Depreciable Asset Took Place Whereby

question 99

Multiple Choice

An intra-entity transfer of a depreciable asset took place whereby the transfer price exceeded the book value of the asset. Which statement is true with respect to the year following the year in which the transfer occurred?

• A) A worksheet entry is made with a debit to gain for a downstream transfer.
• B) A worksheet entry is made with a debit to gain for an upstream transfer.
• C) A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer when the parent uses the equity method.
• D) A worksheet entry is made with a debit to retained earnings for a downstream transfer, regardless of the method used account for the investment.
• E) No worksheet entry is necessary.

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Definitions:

Shaping

The process of reinforcing successively closer approximations to a desired behavior, used in behavioral training and conditioning.

Delayed Reinforcement

A technique in behavior modification that involves a time delay between the desired response of an organism and the delivery of reward.

Classical Conditioning

An educational approach where two stimuli are persistently paired; the response, initially the result of the second stimulus, eventually becomes the result of the first stimulus alone.

Operant Conditioning

A process of learning in which the dynamics of behavior are adjusted by assigning incentives or penalties.