6 eBook Print Question 3 Incomplete answer Marked out of 1.00 Flag question Preparing the [i] consolidation entries for sale of land Assume that during 2015 a wholly owned subsidiary sells land that originally cost $720,000 to its parent for a sale price of $800,000. The parent holds the land until it sells the land to an unaffiliated company on December 31, 2019. The parent uses the equity method of pre-consolidation bookkeeping, a. Prepare the required [l] consolidation entry in 2015. Description [lgain) Equity Investment Land 0 0 Debit Credit b. Prepare the required [I] consolidation entry required at the end of each year 2016 through 2018. Description Debit Credit [lgain) Equity Investment 0 Land 0 0 C. Assume that the parent re-sells the land outside of the consolidated group for $840,000 on December 31, 2019. Prepare the journal entry made by the parent to record the sale and the required [I] consolidation entry for 2019. Description Debit Credit Cash 0 0 0 0 Gain on sale Land 0 [lgain) 0 0 0 0 0 d. What will be the amount of gain reported in the consolidated income statement in 2019? $ 0 Please answer all parts of the question. Previous Save Answers Next