On June 30, 2018, Huxley Company sold some land to its parent company, Willow Corp for $475,000. The land had cost Huxley Company $345,000 when it was acquired three years previously. The transaction was subject to income tax at a rate of 30%. On June 30, 2020, Willow Corp sold the land to an outside party for $575,000. This transaction was also subject to income tax at a 30% rate. Willow Corp owns 75% of the outstanding shares of its subsidiary and accounts for its investment using the cost method; both Willow and Huxley have December 31st year ends