Clemente Co

question 74

Multiple Choice

Clemente Co. owned all of the voting common stock of Snider Co. On January 2, 2012, Clemente sold equipment to Snider for $125,000. The equipment had cost Clemente $140,000. At the time of the sale, the balance in accumulated depreciation was $40,000. The equipment had a remaining useful life of five years and a $0 salvage value. Straight-line depreciation is used by both Clemente and Snider.
At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet dated December 31, 2012?

• A) $105,000.
• B) $100,000.
• C) $95,000.
• D) $80,000.
• E) $85,000.

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Definitions:

Transport Proteins

Proteins that span the cellular membrane and regulate the movement of substances across it, essential for cellular function and homeostasis.

Cytoplasm

The jelly-like substance within a cell that contains the organelles and is enclosed by the cell membrane.

Biofilm

Community of microorganisms living within a shared mass of secreted slime.

Sex Pilus

A thin, tube-like structure used by some bacteria to transfer genetic material to another bacterium during conjugation, a form of sexual reproduction.