ABC Corporation purchased land on January 1, 20X6, for $50,000. On July 15, 20X8, it sold the land to its subsidiary, XYZ Corporation, for $70,000. ABC owns 80 percent of XYZ's voting shares.

1. Based on the preceding information, what will be the worksheet consolidating entry to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for 20X8?

A.	Gain on Sale of Land	20,000
	Land		20,000
B.	Gain on Sale of Land	16,000
	Land		16,000
C.	Land	16,000
	Gain on Sale of Land		16,000
D.	Land	20,000
	Gain on Sale of Land		20,000

2. Based on the preceding information, what will be the worksheet consolidating entry to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for 20X9?

A.	Investment in XYZ	20,000
	Land		20,000
B.	Land	16,000
	Investment in XYZ		16,000
C.	Investment in XYZ	16,000
	Land		16,000
D.	Land	20,000
	Investment in XYZ		20,000

3. Which worksheet consolidating entry will be made on December 31, 20X9, if XYZ Corporation had initially purchased the land for $50,000 and then sold it to ABC on July 15, 20X8, for $70,000?

A.	Investment in XYZ	12,000
	NCI in NA of XYZ	8,000
	Land		20,000
B.	Investment in XYZ	16,000
	NCI in NA of XYZ	4,000
	Land		20,000
C.	Land	20,000
	Investment in XYZ		14,000
	NCI in NA of XYZ		6,000
D.	Land	20,000
	Investment in XYZ		18,000
	NCI in NA of XYZ		2,000