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:

Authorization Cards

Documents signed by employees expressing the desire to be represented by a union in collective bargaining.

Bargaining Unit

A group of employees with a clear and identifiable community of interests, represented by a union in dealing with their employer over labor issues.

Representation Election

A process in which workers vote to decide whether they want to be represented by a union in dealings with their employer.

Perceived Costs

The costs that a consumer or purchaser believes they will incur in the process of obtaining or using a product or service.