In January 2014, S Company, an 80% Owned Subsidiary of P

question 14

Multiple Choice

In January 2014, S Company, an 80% owned subsidiary of P Company, sold equipment to P Company for $990,000. S Company's original cost for this equipment was $1,000,000 and had accumulated depreciation of $100,000. P Company continued to depreciate the equipment over its 9 year remaining life using the straight-line method. This equipment was sold to a third party on January 1, 2017 for $720,000. What amount of gain should P Company record on its books in 2017?

• A) $30,000.
• B) $60,000.
• C) $120,000.
• D) $180,000.

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Definitions:

Low Levels

Conditions or quantities that are significantly less than the average or expected amount.

Long-term Exposure

Prolonged contact with or exposure to a particular environment or substance, often leading to gradual effects on health or system function.

IPM Approach

Integrated Pest Management (IPM) is a sustainable approach to managing pests by combining biological, cultural, physical, and chemical tools in a way that minimizes economic, health, and environmental risks.

Ecological Approach

A perspective or method that emphasizes understanding complex environmental systems and their interactions, often aimed at sustainability.