Roslynn Ltd

question 28

Multiple Choice

Roslynn Ltd. is a subsidiary of Goodale Co. Roslynn sold a machine to Goodale for a $50,000 gain. Goodale has now sold the machine to an unrelated party for a $20,000 gain. At the time of the sale, $35,000 of the profit on the sale from Roslynn was still unrealized. For consolidation purposes, what is the amount of gain that must be recognized on the sale of the machine?

• A)$15,000
• B)$20,000
• C)$30,000
• D)$55,000

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Definitions:

Outsourcing

Use of outside contractors or external organizations to acquire IT services.

Insourcing

Insourcing is the practice of performing a business function internally rather than outsourcing it to an external provider.

Onshoring

The practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.

Gigster's Business Model

A digital platform business model that connects companies with freelance software developers and designers to work on projects, leveraging a gig economy structure.