Clemente Co

question 85

Multiple Choice

Clemente Co. owned all of the voting common stock of Snider Co. On January 2, 2010, 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, 2010?

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

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Definitions:

Auditory Hallucinations

Hearing voices or sounds that have no physical source; often associated with mental health conditions like schizophrenia.

Delusions of Persecution

A false belief where a person thinks that others are out to harm them, common in certain psychiatric conditions.

False Beliefs

Erroneous convictions or understandings that an individual holds, despite contradictory evidence or logic.

Hurt

A sensation of physical pain or emotional distress.