Clemente Co

question 65

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:

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The federal administrative framework of Canada, characterized by a parliamentary system where the prime minister is the head of government.

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Ethnic groups who are the original inhabitants of a given region, having distinct cultural traditions and historical ties to the land before colonization or formation of modern states.

Marxist

Pertaining to the theories and principles of Karl Marx, emphasizing the role of class struggle in societal change and advocating for a society where the means of production are communally owned.

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