Clemente Co

question 118

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:

Limbic System

A complex system of nerves and networks in the brain, involved in controlling basic emotions and drives.

Lesions

Abnormal changes in body tissues caused by disease or injury.

Fear And Anger

Basic emotions characterized by specific physiological responses; fear relates to threats, while anger relates to obstacles or injustices.

Cerebral Cortex

The outer layer of the cerebrum in the brain, associated with higher brain functions such as thought, reasoning, and memory.