Subsidiary Corporation Purchases a Used Machine from Parent Corporation in an Intercompany

question 77

Multiple Choice

Subsidiary Corporation purchases a used machine from Parent Corporation in an intercompany transaction. Which of the following events is a corresponding event for the intercompany transaction?

• A)the purchasing group member depreciating the machine
• B)the purchasing group member selling the machine for cash to a nonmember of the group
• C)the departure of the purchasing group member from the affiliated group when its stock is sold to a nonmember of the group
• D)All of the above are recognition events.

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Definitions:

Chronology Of Events

The sequential order in which past events occurred, typically presented in a timeline format.

CPT

Current Procedural Terminology, a set of codes used by healthcare providers to document and bill for procedures and services.

2014 CPT Manual

The 2014 CPT Manual is a publication by the American Medical Association listing the codes used by medical professionals to report and bill for procedures and services.

Add-On Code

In medical billing, a code that represents an additional procedure performed during the same service session as the primary procedure.