On January 1,20X7,Server Company Purchased a Machine with an Expected

question 18

Multiple Choice

On January 1,20X7,Server Company purchased a machine with an expected economic life of five years.On January 1,20X9,Server sold the machine to Patron Corporation and recorded the following entry:
Patron Corporation holds 75 percent of Server's voting shares.Server reported net income of $50,000,and Patron reported income from its own operations of $100,000 for 20X9.There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer.
-Based on the preceding information,consolidated net income for 20X9 will be:

• A)$150,000.
• B)$100,000.
• C)$148,000.
• D)$130,000.

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Definitions:

Repression

A defense mechanism in psychoanalytic theory where distressing thoughts, memories, or impulses are excluded from consciousness.

Long-Term Memory

A type of memory responsible for the storage of information over an extended period, ranging from a few days to decades.

Unlimited Capacity

A theoretical concept suggesting that certain systems or processes, such as human memory, have no fixed limit on their capacity to store information.

Sensory Register

The initial stage of memory, where sensory information is stored for a very brief period.