Linville Ltd

question 20

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 three years. Both companies use the straight-line method of depreciation. What amount should be shown for depreciation expense on Linville's consolidated statement of comprehensive income at December 31, 20X1?

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

Recognize the impact of socioeconomic status on the prevalence and management of chronic conditions among older adults.

Identify nutritional needs and the role of supplements in aging healthily.

Understand the classification and management of chronic diseases like arthritis in older adults.

Understand the key processes and symptoms associated with Alzheimer's disease progression.

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Definitions:

Specific Identification Method

An inventory costing method that tracks the actual cost of each specific item in inventory until it is sold.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor’s share of the investee’s net assets.

Journal Entries

The method by which all business transactions are recorded in a company's accounting system, using debits and credits.

Other Comprehensive Income

Portions of total comprehensive income of a company not realized in net income, including items like foreign currency translation adjustments or unrealized gains on securities.