Assuming No Impairment in Value Prior to Transfer,assets Transferred by a Parent

question 53

Multiple Choice

Assuming no impairment in value prior to transfer,assets transferred by a parent company to another entity it has created should be recorded by the newly created entity at the assets':

• A)cost to the parent company.
• B)book value on the parent company's books at the date of transfer.
• C)fair value at the date of transfer.
• D)fair value of consideration exchanged by the newly created entity.

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Definitions:

Soviet Union

A federal socialist state in Eurasia that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR), and was a dominant world power during most of its existence.

Kitchen Debate

A series of impromptu exchanges between U.S. Vice President Richard Nixon and Soviet Premier Nikita Khrushchev in 1959, focusing on the merits of capitalism versus communism, famously occurring beside a model kitchen.

John Foster Dulles

An influential American diplomat and Secretary of State under President Dwight D. Eisenhower, known for his significant role in shaping U.S. foreign policy during the early Cold War era.

Massive Retaliation

Strategy that used the threat of nuclear warfare as a means of combating the global spread of communism.