Clemente Co

question 3

Multiple Choice

Clemente Co.owned all of the voting common stock of Snider Co.On January 2,2009,Clemente sold some equipment to Snider for $125,000.The equipment had cost $140,000.At the time of the sale,the balance in accumulated depreciation was $40,000.The equipment had a remaining useful life of five years and a $0 salvage value.Straight-line depreciation is used by both Clemente and Snider.At what amount should the equipment (net of depreciation) be included on the consolidated balance sheet dated December 31,2009?

• A)$100,000.
• B)$95,000.
• C)$75,000.
• D)$80,000.
• E)$85,000.

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Definitions:

Morpheme

The smallest unit of meaning in the words of a language.

Phoneme

The smallest unit of sound in a language that can distinguish one word from another, such as the difference between the sounds /p/ and /b/.

Particular Sound

refers to a specific auditory stimulus or noise that is distinct or unique in its characteristics.

Cochlear Implant

A device that transforms sounds into electric pulses that directly stimulate the auditory nerve, bypassing the malfunctioning inner ear that ordinarily processes sound.