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Justings Co. owned 80% of Evana Corp. During 2009, Justings sold to Evana land with a book value of $48,000. The selling price was $70,000.
Justings Co. owned 80% of Evana Corp. During 2009, Justings sold to Evana land with a book value of $48,000. The selling price was $70,000. In its accounting records, Justings should A. Not recognize a gain on the sale of the land since it was made to a related party B. Recognize a gain of $17,600 C. Defer recognition of the gain until Evana sells the land to a third party D. Recognize a gain of $8,000 E. Recognize a gain of $22,000
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