On January 1, 2018, a 75%-owned Subsidiary company sold to its Parent company for $430,000 a parcel of land that had cost the Subsidiary $428,000. On March 2, 2021, Parent company sold the land to an outside company for $433,000.

On the consolidated income statement for 2021,

Group of answer choices

a gain on sale of $3,000 should be reported.

a loss on sale of $5,000 should be reported.

a gain on sale of $2,000 should be reported.

a gain on sale of $5,000 should be reported.