Subsidiary Corporation Purchases a Used Machine from Parent Corporation in an Intercompany

question 77

Multiple Choice

Subsidiary Corporation purchases a used machine from Parent Corporation in an intercompany transaction. Which of the following events is a corresponding event for the intercompany transaction?

• A)the purchasing group member depreciating the machine
• B)the purchasing group member selling the machine for cash to a nonmember of the group
• C)the departure of the purchasing group member from the affiliated group when its stock is sold to a nonmember of the group
• D)All of the above are recognition events.

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Definitions:

Power and Ego

Influences in organizational and personal dynamics, where authority and self-importance affect decisions and interactions.

Corporate Life

Refers to the culture, practices, dynamics, and environment of corporations and how individuals within them interact and function.

Horizontal Merger

The merging of two competitors.

Competitors Merge

The process in which two or more competing businesses combine into a single entity, potentially altering market dynamics and competitive landscapes.