Clemente Co

question 86

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, 2011?

• A) $110,000.
• B) $105,000.
• C) $100,000.
• D) $90,000.
• E) $60,000.

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Definitions:

Emergent

Referring to a situation or condition requiring immediate attention or intervention to prevent serious harm.

Triage

The process of determining the priority of patients' treatments based on the severity of their condition.

Complete Health History

A comprehensive record of a patient's medical background including diseases, surgeries, and family medical history.

Severity

The level of intensity, seriousness, or acuteness of a situation, condition, or disease.