Common stock of the dietz company


Emron Company owns a 100% interest in the common stock of the Dietz Company. On January 1, 20X2, Emron sold Dietz a fixed asset that Dietz will use over a 5-year period. The asset was sold at a $5,000 profit. In the consolidated statements, this profit will

a. not be recorded.

b. be recognized over 5 years.

c. be recognized in the year of sale.

d. be recognized when the asset is resold to outside parties at the end of its period of use.

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Accounting Basics: Common stock of the dietz company
Reference No:- TGS076993

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