Question
A parent sells land costing $40,000 to a subsidiary in 2018 for $55,000. The subsidiary sells the land in 2020 to a third party for
A parent sells land costing $40,000 to a subsidiary in 2018 for $55,000. The subsidiary sells the land in 2020 to a third party for $65,000. On the consolidated income statement for 2020, the gain on sale of land is:
a. $15,000
b. $10,000
c. $0
d. $25,000
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Accounting Ethics
Authors: Ronald F. Duska, Brenda Shay Duska, Julie Anne Ragatz
2nd Edition
1405196130, 978-1405196130
