#22

Farms for $625,000 goods which had cost $425.000. Gaspard Farms still owne the ed of the year. In 2013, Gentry sold goods with a cost of $800,000 to Gaspard Farms for $1,000,000 and Gaspard Farms still owned 10% of the goods at year-end sold was S5,400,000 for Gentry and goods sold for 2013? or consolidated cost Of $1,200,000 for Gaspard Farms. What was consolidated cost of A) $6,600,000. B) $6,604,000. $5,620,000. 5,596,000 E) $5,625,000 22. Stark Company, a 90% owned subsidiary of Parker Inc. sold land to Parker on May 1, 2012, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2012, 2013, and 2014, respectively. Parker sold the land purchased from Stark in 2012 for $92,000 in 2014. Compute the gain or loss relating to the land that will be reported in consolidated net income for 2014 A) S 5,000 loss. B) S 7,000 gain. C) $12,000 gain. D) S 7,000 loss. E) $12,000 loss