Jones Corporation owns 100 of Smith Corporation On July 1, Year 1, Jones Corporation sold land to Smith Corporation for $400,000 The initial cost of the land to Smith was $330,000 On December 31, Year 1, Smith sold the land to IBM Corporation for $425,000 Jones does not own any portion of IBM Corporation How should Jones account for the gain on sale of land for the two land sales transactions in its consolidated working papers and general ledger a Recognize the $70,000 intercompany gain on sale of land on July 1, Year 1 to Jones Recognize a gain on sale of $25,000 for the sale of land to IBM on December 31, Year 1 b Record no entry for the intercompany land sale on July 1, Year 1 to Jones Recognize a gain on sale of $ 95,000 for the sale of land to IBM on December 31, Year 1 c Eliminate the $70,000 intercompany gain on sale of land on July 1, Year 1 to Jones Eliminate the $25,000 gain on the sale of land to IBM on December 31, Year 1 d Eliminate the $70,000 intercompany gain on sale of land on July 1, Year 1 to Jones Recognize a gain on sale of $95,000 for the sale of land to IBM on December 31, Year 1

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Jones Corporation owns 100  of Smith Corporation  On July 1, Year 1, Jones Corporation sold land to Smith Corporation for $400,000  The initial cost of the land to Smith was $330,000  On December 31, Year 1, Smith sold the land to IBM Corporation for $425,000  Jones does not own any portion of IBM Corporation  How should Jones account for the gain on sale of land for the two land sales transactions in its consolidated working papers and general ledger  a  Recognize the $70,000 intercompany gain on sale of land on July 1, Year 1 to Jones  Recognize a gain on sale of $25,000 for the sale of land to IBM on December 31, Year 1  b  Record no entry for the intercompany land sale on July 1, Year 1 to Jones  Recognize a gain on sale of $ 95,000 for the sale of land to IBM on December 31, Year 1  c  Eliminate the $70,000 intercompany gain on sale of land on July 1, Year 1 to Jones  Eliminate the $25,000 gain on the sale of land to IBM on December 31, Year 1  d  Eliminate the $70,000 intercompany gain on sale of land on July 1, Year 1 to Jones  Recognize a gain on sale of $95,000 for the sale of land to IBM on December 31, Year 1

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Jones Corporation owns 100% of Smith Corporation. On July 1, Year 1, Jones Corporation sold land to Smith Corporation for $400,000. The initial cost of

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