TLC Homecare Ltd

question 16

Multiple Choice

TLC Homecare Ltd.owns 100% of Errand Service for Seniors Ltd.(ESS) .At January 2,20X1,TLC bought 12 identical cars for $300,000.It promptly sold 4 of the cars to ESS for $112,000.ESS will amortize the cars over 5 years using the straight-line method.At December 31,20X2,what is the net adjustment that should be made to accumulated depreciation in TLC's consolidated financial statements? Ignore income taxes.

• A)$0
• B)Reduction of $2,400
• C)Reduction of $4,800
• D)Reduction of $5,600

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Definitions:

Bohemian Lifestyle

A lifestyle that is unconventional and often involved in the arts, rejecting traditional ways of living in favor of creativity, freedom, and exploration.

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Choosing to live life without engaging in any romantic relationships, often prioritizing personal freedom and independence.

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An amendment to the U.S. Constitution, guaranteeing equal protection under the law.

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The custom of marrying within one's social, cultural, or ethnic group.