Advance financial accounting:

Saleh Corporation is a 90%-owned subsidiary of Parent Corporation, acquired for $270,000 on 1/1/X5. Investment cost was equal to book value and fair value.

Salehs net income in 20X5 was $80,000, and Parents income, excluding its income from Saleh, was $90,000.

Salehs income includes a $10,000 unrealized gain on land that cost $50,000 and was sold to Parent for $60,000.

Assume that Saleh sold the land in 20X7. And Parent adjusts for this transaction in the equity accounts.