A Subsidiary Sold a Depreciable Asset to the Parent at a Profit

question 26

Multiple Choice

A subsidiary sold a depreciable asset to the parent at a profit of $100 and the parent depreciates the assets on a straight-line basis over ten years. In year one after the sale, the realized profit is:

• A)$100
• B)$ 90
• C)$ 110
• D)$50

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