Chain Co Owned All of the Voting Common Stock of Shannon

question 57

Multiple Choice

Chain Co. owned all of the voting common stock of Shannon Corp. The corporations' balance sheets dated December 31, 2010, include the following balances for land: for Chain--$416,000, and for Shannon--$256,000. On the original date of acquisition, the book value of Shannon's land was equal to its fair value. On April 4, 2011, Chain sold to Shannon a parcel of land with a book value of $65,000. The selling price was $83,000. There were no other transactions which affected the companies' land accounts during 2010. What is the consolidated balance for land on the 2011 balance sheet?

• A) $672,000.
• B) $690,000.
• C) $755,000.
• D) $737,000.
• E) $654,000.

---

Definitions:

Life as a Whole

A perspective or consideration of an individual's life in its entirety, rather than focusing on specific parts or periods.

Ethical Absolutism

The doctrine that holds there are eternal, universally applicable moral principles; it is slightly rephrased from moral absolutism, highlighting its focus on ethics.

Virtue Ethics

An approach to ethics that emphasizes an individual's character as the key element of ethical thinking, rather than rules or consequences.

Ethical Wisdom

The understanding and insight into making moral decisions that benefit all parties involved, rooted in ethical principles and compassion.