On Janury 1, 2015, Parent company sold to Subsidiary company for $60,000, a parcel of land that had cost the Parent $57,000. On March 2, 2019, Subsidiary company sold the land to an outside company for $62,000.

6. Working paper entries for the year ended December 31, 2017 would include a. a debit of $3,000 to Land

b. a credit of $7,000 to Land

c. a debit of $3,000 to Investment in Subsidiary

d. a debit of $3,000 to Retained Earnings

7. Working paper entries for the year ended December 31, 2019 would include

a. A credit of $3,000 to Gain on Sale of Land

b. A credit of $5,000 to Retained Earnings

c. A debit of $3,000 to Intercompany Gain on Sale of Land

d. A credit of $5,000 to Gain on Sale of Land