In 2018,P Co sold land to its subsidiary, S Co, for $38,000. It had a book value of $24,000. In the next year,S co sold the land for $41,000 to third party.

Which of the following is correct?

Select one:

a. A consolidation working sheet entry is required each year that S co has the land

b. A consolidation working sheet entry is required only if the subsidiary was less than 100% owned in 2014.

c. No consolidation working sheet entry is required for this transaction in 2014.

d. A consolidation working sheet entry was required only if the land was held for resale in 2014

The elimination entry under the perpetual inventory system for intercompany sales is a debit to sales and a credit to Cost of goods sold

Select one:

True

False