Minor Company sold land to Major Company on November 15, 20X4, and recorded a gain of $ 30,000 on the sale. Major owns 80 percent of Minors common shares. Which of the following statements is correct?

a. A proportionate share of the $ 30,000 must be treated as a reduction of income assigned to the noncontrolling interest in the consolidated income statement unless the land is resold to a nonaffiliate in 20X4.

b. In computing consolidated net income, it does not matter whether the land is or is not resold to a nonaffiliate before the end of the period; the $ 30,000 will not affect the computation of consolidated net income in 20X4 because the profits are on the subsidiarys books.

c. Minors trial balance as of December 31, 20X4, should be adjusted to remove the $ 30,000 gain because the gain is not yet realized.