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:

Lunar Highlands

The lighter and heavily cratered areas of the Moon, which are elevated regions rich in anorthosite.

Dark Circular Maria

the large, dark plains formed by ancient volcanic eruptions on the Moon's surface.

Dark Mare

Large, dark basaltic plains on Earth's Moon, formed by ancient volcanic eruptions.

Basalt Flows

The movement and solidification of basaltic lava across the Earth's surface, forming solid igneous rock formations.