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:

Milgram's Research

Refers to a series of psychological experiments conducted by Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

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Deep and lasting emotional pain or trauma that affects an individual’s mental and emotional health.

Variables

Elements, features, or factors that are liable to vary or change within the context of a scientific experiment or research study.

Spatial Proximity

The physical closeness between objects or individuals, which can influence social interactions and perceptions of connectedness.