Multiple Choice
Linville Ltd.owns 80% of the outstanding shares of Chance Co.On January 2,20X1,Chance sold a machine to Linville for $270,000.Chance recorded a $45,000 gain on the sale.At the time of the sale,the machine had a remaining useful life of 3 years.Both companies use the straight-line method of amortization.What amount should be shown for amortization on Linville's consolidated statement of comprehensive income at December 31,20X1?
A) $15,000
B) $72,000
C) $75,000
D) $90,000
Correct Answer:
Verified
Correct Answer:
Verified
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