On 1/1/16 Peck Sells a Machine with a $20,000 Book

question 31

Multiple Choice

On 1/1/16 Peck sells a machine with a $20,000 book value to its subsidiary Shea for $30,000.Shea intends to use the machine for 4 years, which was the remaining life that Peck had at the time of the sale.Neither company had assigned a salvage value to the machine.On 12/31/17 Shea sells the machine to an outside party for $14,000.What amount of gain or (loss) for the sale of assets is reported on the consolidated financial statements in 2017?

• A)​loss of $6,000
• B)​loss of $1,000
• C)​gain of $4,000
• D)​gain of $14,000

---

Definitions:

Elaboration

A memory strategy that involves making connections between two or more things to be remembered.

Metamemory

An individual’s knowledge about their own memory abilities and strategies to aid memory, including the understanding of how memory works.

Memory Performance

Refers to the efficiency and accuracy of cognitive processes involved in storing, retaining, and recalling information.

Metamemory

An individual's knowledge and awareness of their own memory capabilities and strategies.