Question 11 5 pts

(TCO 3) Clue Co. owned all of the voting common stock of Snow Co. On January 2, 20x1, Clue sold some equipment to Snow for $125,000. The equipment had cost $140,000. At the time of the sale, the balance in accumulated depreciation was $40,000. The equipment had a remaining useful life of 5 years and a $0 salvage value. Straight-line depreciation is used by both Clue and Snow. At which amount should the equipment (net of depreciation) be included on the consolidated balance sheet dated December 31, 20x1?

$100,000

$95,000

$75,000

$80,000

$85,000

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Question 12 5 pts

(TCO 3) Nicholas owns 100% of the capital stock of both Teddy Corp. and Wright Corp. Teddy purchases merchandise inventory from Wright at 140% of Wright's cost. During the Year 20x1, merchandise that cost Wright $40,000 was sold to Teddy. Teddy sold all of this merchandise to unrelated customers for $81,200 during the Year 20x1. In preparing combined financial statements for 20x1, Nicholas's bookkeeper disregarded the common ownership of Teddy and Wright. Which amount should be eliminated from cost of goods sold in the combined income statement for the Year 20x1?

$56,000

$40,000

$24,000

$16,000

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Question 13 5 pts

(TCO 4) A spot rate may be defined as

the price a foreign currency can be purchased or sold for today.

the price today at which a foreign currency can be purchased or sold in the future.

the forecasted future value of a foreign currency.

the U.S. dollar value of a foreign currency.

the euro value of a foreign currency.

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Question 14 5 pts

(TCO 4) Which method of translating a foreign subsidiary's financial statements is correct?

Historical rate method

Working capital method

Current rate method

Remeasurement

Temporal method

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Question 15 5 pts

(TCO 5) The partnership of Churn, Sandy, and Tammy was insolvent and will be unable to pay $30,000 in liabilities currently due. Which recourse was available to the partnership's creditors?

They must present equal claims to the three partners as individuals.

They must try to obtain a payment from the partner with the largest capital account balance.

They cannot seek remuneration from the partners.

They may seek remuneration from any partner they choose.

They must present their claims to the three partners in the order of the partners' capital account balances. answr abcd for all quesitons, recieve thumbs up