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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Definitions:

Memory

An active system that receives information from the senses, puts that information into a usable form, and organizes it as it stores it away, and then retrieves the information from storage.

Cognitive Distortions

Unhealthy thinking patterns that contribute to emotional distress and mental health concerns, often identified in cognitive behavioral therapy.

Therapeutic Alliance

The collaborative and trusting relationship between a therapist and client, considered essential for effective therapy.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.