On January $1,20$X$1,$ Amber Products Corporation sold land costing $$200,000$ to its subsidiary, Jerry Interiors Corporation, for $$240,000.$ Jerry still held the land at the end of $20$X$2.$ Jerry sold the land to a nonaffiliate on March $31,20$X$3,$ for $$255,000.$ Prepare the consolidation entry related to the land at the end of $20$X$2.$

$$ Debit Investment in Jerry for $$40,000$; Credit Land for $$40,000$

$$ Debit Gain on Sale of Land for $$40,000$; Credit Land for $$40,000$

$$ Debit Land for $$40,000$; Credit Investment in Jerry for $$40,000.$

$$ Debit Land for $$40,000$; Credit Gain on Sale of Land for $$40,000$