On January 1, 2020, Smeder Company, an 80% Owned Subsidiary

question 60

Multiple Choice

On January 1, 2020, Smeder Company, an 80% owned subsidiary of Collins, Inc., transferred equipment with a 10-year life (six of which remain with no salvage value) to Collins in exchange for $84,000 cash. At the date of transfer, Smeder's records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used. Smeder reported net income of $28,000 and $32,000 for 2020 and 2021, respectively. All net income effects of the intra-entity transfer are attributed to the seller for consolidation purposes.For consolidation purposes, what net debit or credit will be made for the year 2020 relating to the accumulated depreciation for the equipment transfer?

• A) Debit accumulated depreciation, $46,000.
• B) Debit accumulated depreciation, $48,000.
• C) Credit accumulated depreciation, $48,000.
• D) Credit accumulated depreciation, $46,000.
• E) Debit accumulated depreciation, $2,000.

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Definitions:

Electronic Medical Records

Digital versions of patients' paper charts, which contain medical and treatment histories of patients.

Development

The process of growth and change that a living organism goes through, making it more complex and specialized over time.

Coordination of Care

The deliberate organization of patient care activities between two or more participants involved in a patient's care to facilitate the appropriate delivery of healthcare services.

Communication Problems

Difficulties in conveying or receiving messages effectively, which can occur due to various reasons such as language barriers, hearing impairments, or cognitive disorders.