Clemente Co

Multiple Choice

Clemente Co.owned all of the voting common stock of Snider Co.On January 2,2009,Clemente sold some equipment to Snider 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 five years and a $0 salvage value.Straight-line depreciation is used by both Clemente and Snider.At what amount should the equipment (net of depreciation) be included on the consolidated balance sheet dated December 31,2009?

A) $100,000.
B) $95,000.
C) $75,000.
D) $80,000.
E) $85,000.