On January 1,2007,Servant Company Purchased a Machine with an Expected

question 40

Multiple Choice

On January 1,2007,Servant Company purchased a machine with an expected economic life of five years.On January 1,2009,Servant sold the machine to Master Corporation and recorded the following entry:
Master Corporation holds 75 percent of Servant's voting shares.Servant reported net income of $50,000,and Master reported income from its own operations of $100,000 for 2009.There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer.

-Based on the preceding information,in the preparation of the 2009 consolidated income statement,depreciation expense will be:

• A)Debited for $1,000 in the eliminating entries.
• B)Credited for $1,000 in the eliminating entries.
• C)Debited for $15,000 in the eliminating entries.
• D)Credited for $15,000 in the eliminating entries.

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Definitions:

Simple Random Sample

A portion of a statistical population where every member in that portion is equally likely to be selected.

Mean Difference

The average difference between two sets of data. It is commonly used in comparisons of before and after measurements or between experimental and control groups.

Standard Deviation

An assessment of the range of variation or dispersion present in a set of numeric values, demonstrating how spread out the values are in relation to the average.

Mean

The arithmetic average of a set of values, calculated by summing all the values and then dividing by the total number of values.