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:

Collections

The process of pursuing payments of debts owed by individuals or businesses, typically referring to the accounts receivable department's efforts.

Merchandise Purchases

The acquisition of goods for resale, typically in a retail or wholesale business setting.

Cost of Goods Sold

The expenses directly tied to the creation of the products sold by a business.

Collections

The process of pursuing payments of debts owed by individuals or businesses, typically involving accounts receivable.