On October 6, 2021, Ronan Corp. sold land to Bane Co., its wholly owned subsidiary. The land cost $72,400 and was sold to Bane for $96,000. For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized?

• No gain may be recognized.

• As Bane uses the land.

• When Bane Co. sells the land to a third party.

• Proportionately over a designated period of years.

• When Bane Co. begins using the land productively.