6. On January 1, 2015, Subsidiary company sold to Parent company for $30,000 a parcel of land that had cost the subsidiary $23,000. On March 2, 2018, Parent company sold the land to an outside party for $27,000. Working paper entries for the year ended December 31,2017 would include:

a. a debit of $7,000 to Land

b. a debit of $7,000 to Investment in subsidiary.

c. a debit of $7,000 to Retained Earnings.

d. a credit of $7,000 to Intercompany loss on sale of land

7. Which of the following accounts appears on consolidated financial statements?

a. Equipment, reported on the subsidiary's books

b. Retained earnings, reported on the subsidiary's books

c. Dividends Declared, reported on the subsidiary's books

d. Investment in subsidiary, reported on the parent's books