Multiple Choice
TLC Homecare Ltd.owns 100% of Errand Service for Seniors Ltd.(ESS) .At January 2,20X1,TLC bought 12 identical cars for $300,000.It promptly sold 4 of the cars to ESS for $112,000.ESS will amortize the cars over 5 years using the straight-line method.At December 31,20X2,what is the net adjustment that should be made to accumulated depreciation in TLC's consolidated financial statements? Ignore income taxes.
A) $0
B) Reduction of $2,400
C) Reduction of $4,800
D) Reduction of $5,600
Correct Answer:
Verified
Correct Answer:
Verified
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