Question
Big Co. owns 60% of the stock of Little Co. On 1/1/22, Little Co sells land to Big Co for $50,000. The land had cost
Big Co. owns 60% of the stock of Little Co.
On 1/1/22, Little Co sells land to Big Co for $50,000. The land had cost Little Co. $30,000 several years earlier.
On 3/1/25, Big Co sells the land to a thirds party for $80,000
Little Co reports earnings of $50,000 each year.
What is the unrealized gain on sale in 2022?
What is the income to the NC Interest in 2022 and 2023?
What is the income to the NC Interest in 2025?
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Financial Reporting And Analysis Using Financial Accounting Information
Authors: Charles H Gibson
12th Edition
1439080607, 978-1439080603
