On January 1, 2010, Smeder Company, an 80% Owned Subsidiary

question 27

Multiple Choice

On January 1, 2010, Smeder Company, an 80% owned subsidiary of Collins, Inc., transferred equipment with a 10-year life (six of which remain with no salvage value) to Collins in exchange for $84,000 cash. At the date of transfer, Smeder's records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used. Smeder reported net income of $28,000 and $32,000 for 2010 and 2011, respectively. All net income effects of the intra-entity transfer are attributed to the seller for consolidation purposes.
-What is the net effect on consolidated net income in 2010 due to the equipment transfer?

• A) Increase $2,000.
• B) Decrease $12,000.
• C) Decrease $10,000.
• D) Decrease $14,000.
• E) Increase $10,000.

Grasp the definitions and distinctions between schemas, metaphors, and priming in social cognition.

Recognize the effects of priming on behavior and decision-making processes.

Learn the mechanisms behind schema revision and how it relates to information processing and behavior.

Understand the role and impact of confirmation bias in information gathering and belief formation.

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Enemas

A medical procedure involving the introduction of liquid into the rectum and lower bowel to relieve constipation or for diagnostic purposes.