P Corp Owns 90% of the Outstanding Common Stock of S

question 3

Multiple Choice

P Corp. owns 90% of the outstanding common stock of S Company. On December 31, 2017, S sold equipment to P for an amount greater than the equipment's book value but less than its original cost. The equipment should be reported on the December 31, 2017 consolidated balance sheet at:

• A) P's original cost less 90% of S's recorded gain.
• B) P's original cost less S's recorded gain.
• C) S's original cost.
• D) P's original cost.

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Definitions:

Second-order Model

A model that includes squared terms of the predictor variables to capture the curvature in the data-set.

Winning Team's Percentage

A statistic that represents the proportion of times a team has won in relation to the total number of games or matches played.

Independent Variable

In an experiment or study, the variable that is manipulated or changed to observe its effect on the dependent variable.

Second-order Model

A statistical model that includes the squared terms of the predictors to account for curvature in the relationship between the independent and dependent variables.