Johnson, Inc. and Lucius, Inc. are related companies subject to consolidation. During the year, Lucius, Inc. sold land to Johnson, Inc. for $700,000 cash that had a BV of $500,000 and a FMV of $750,000. The elimination entry at the time of consolidation for this transaction would be:

a)

Debit to Gain on Sale of Land of $200,000; Credit to Land of $200,000

b)

Debit to Gain on Sale of Land of $50,000; Credit to Land of $50,000

c)

Debit to Gain on Sale of Land of $250,000; Credit to Land of $250,000

d)

Debit to Land of $50,000; Credit to Loss on Sale of Land of $50,000