Ignoring Income Taxes, What Is the Amount of Unrealized Profit/(loss)

question 59

Multiple Choice

Ignoring income taxes, what is the amount of unrealized profit/(loss) remaining from the intercompany sale of equipment at December 31, 2019?

• A) $16,000 loss.
• B) $12,000 gain.
• C) $12,500 gain.
• D)$16,000 gain.

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Definitions:

Silicon Tetrahedron

A fundamental structural unit in silicate minerals, consisting of four oxygen atoms symmetrically arranged around a central silicon atom.

Cleavage

The tendency of a mineral to break along flat, smooth surfaces, which is related to the mineral’s crystal structure.

Silicate Minerals

Minerals that contain silicon and oxygen, and usually one or more additional elements, making up the largest and most important class of rock-forming minerals.

Silicon

A chemical element with the symbol Si and atomic number 14, known for its semiconductor properties and widely used in electronics and computer chips.