2. Penang Corporation acquired a 90 percent interest in Doki Corporation on January 1, 2012, when the book value of Doki’s net assets was equal to their fair value. During 2014, Doki sold land that cost $50,000 to Penang for $75,000.

Penang held the land for two years before selling it for $100,000 to a third party in 2016. How will the consolidated account be affected at December 31, 2016?

a Credit to gain on sale of land for $25,000 b Credit to gain on sale of land for $22,500 c Credit to gain on sale of land for $50,000 d None of the above