Linville Ltd

question 12

Multiple Choice

Linville Ltd.owns 80% of the outstanding shares of Chance Co.On January 2,20X1,Chance sold a machine to Linville for $270,000.Chance recorded a $45,000 gain on the sale.At the time of the sale,the machine had a remaining useful life of 3 years.Both companies use the straight-line method of amortization.What amount should be shown for amortization on Linville's consolidated statement of comprehensive income at December 31,20X1?

• A)$15,000
• B)$72,000
• C)$75,000
• D)$90,000

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Definitions:

Subsidiary Human Capital

the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to a subsidiary organization.

Transnational Strategy

A business approach where a company seeks to achieve global reach, efficiency, and local responsiveness simultaneously.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, often due to unique resources, capabilities, or strategies.

Strategic Challenges

Difficulties or obstacles encountered in planning and executing strategies to achieve long-term goals.