Use the Following Information to Answer the Question(s) Below

question 49

Multiple Choice

Use the following information to answer the question(s) below.

On December 31, 2014, Pinne Corporation sold equipment with a three-year remaining useful life and a book value of $21,000 to its 70%-owned subsidiary, Sull Company, for a price of $27,000. Pinne bought the equipment four years ago for $49,000. The salvage value is zero. Straight-line depreciation is used by both companies.

-An elimination entry at December 31,2014 for the intercompany sale will include a

• A)credit of $6,000 to Depreciation Expense.
• B)credit of $6,000 to Accumulated Depreciation.
• C)credit of $6,000 to Equipment.
• D)credit of $6,000 to Gain on Sale of Equipment.

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Definitions:

Family Self

A concept in psychology that refers to the part of an individual's self-identity that is formed through relationships and roles within the family unit.

Sexual Maturation

The process through which an individual reaches sexual maturity or puberty, marked by physical and hormonal changes allowing for reproduction.

Sequence

A particular order in which related events, movements, or things follow each other.

Age-Related Timing

A concept in developmental psychology regarding the timing of events in an individual's life which may impact their growth and behavior.