Question
21. Frozen Corporation purchased land on January 1, 20X6, for $50,000. On July 15, 20X8, it sold the land to its subsidiary, Elsa Corporation, for
21. Frozen Corporation purchased land on January 1, 20X6, for $50,000. On July 15, 20X8, it sold the land to its subsidiary, Elsa Corporation, for $70,000. Frozen owns 80 percent of Elsa's voting shares. What will be the worksheet consolidating entry to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for 20X8?
Group of answer choices
DR Gain on Sale of Land $16,000, CR Land $16,000
DR Land $16,000, CR Gain on Sale of Land $16,000
DR Land $20,000, CR Gain on Sale of Land $20,000
DR Gain on Sale of Land $20,000, CR Land $20,000
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Financial Accounting An Introduction to Concepts, Methods and Uses
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
14th edition
978-1111823450, 1-133-36617-1 , 1111823456, 978-1-133-3661, 978-1133591023
