An Intra-Entity Sale Took Place Whereby the Book Value Exceeded

question 72

Multiple Choice

An intra-entity sale took place whereby the book value exceeded the transfer price of a depreciable asset. Which statement is true for the year following the sale?

• A) A worksheet entry is made with a debit to retained earnings for an upstream transfer.
• B) A worksheet entry is made with a credit to retained earnings for an upstream transfer.
• C) A worksheet entry is made with a debit to retained earnings for a downstream transfer.
• D) A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer.
• E) No worksheet entry is necessary.

---

Definitions:

Dysuria

A condition characterized by painful or difficult urination, often indicating a urinary tract infection.

Hematuria

The presence of blood in urine, which can be a symptom of various underlying conditions.

Auscultated Over

The process of listening to the internal sounds of the body, usually with a stethoscope, as part of a medical examination.

Carotid Artery

A major artery located in the neck that supplies blood to the brain, neck, and face.