7. On January 1, 2017, Parent company sold to subsidiary company for $150,000 a parcel of land that had cost the parent $400,000. On March 2, 2020, subsidiary company sold the land to an outside company for $450,000. Working paper entries on December 31, 2018 will include

a. A debit of $250,000 to land

b. A debit of $50,000 to retained earnings

c. A debit of $50,000 to intercompany sale of land

d. A credit of $50,000 to investment in subsidiary

8. A parent has a 60% investment in its subsidiary. Unconfirmed losses on upstream sales:

a. Increase equity in net income and the noncontrolling interest in net income

b. Increase equity in net income

c. Reduce equity in net income

d. Reduce equity in net income and the noncontrolling interest in net income