Clemente Co

question 74

Multiple Choice

Clemente Co. owned all of the voting common stock of Snider Co. On January 2, 2012, Clemente sold equipment to Snider for $125,000. The equipment had cost Clemente $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 in the consolidated balance sheet dated December 31, 2012?

• A) $105,000.
• B) $100,000.
• C) $95,000.
• D) $80,000.
• E) $85,000.

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Definitions:

Newman Projection

A method of visualizing the spatial arrangement of atoms in a molecule, showing how they are connected from the perspective of a bond axis.

Gauche Conformer

A conformation where groups are separated by a dihedral angle of approximately 60 degrees, often leading to steric hindrance.

Butane

A gaseous hydrocarbon of the alkane series, found in natural gas and used as fuel, with a formula of C4H10.

Angle Strain

A form of strain in a cyclic molecule when bond angles deviate from their ideal values, leading to extra energy stored in the compound.