Parent Corporation purchased land from S1 Corporation for $220,000 on December 26, 20X8. This purchase followed a series of transactions between P-controlled subsidiaries. On February 15, 20X8, S3 Corporation purchased the land from a nonaffiliate for $160,000. It sold the land to S2 Company for $145,000 on October 19, 20X8, and S2 sold the land to S1 for $197,000 on November 27, 20X8. Parent has control of the following companies: Subsidiary Level of Ownership 2008 Net Income

S3 80% $100,000

S2 70% $70,000

S1 90% $95,000

Parent reported income from its separate operations of $200,000 for 20X8.

11-4. Based on the preceding information, what amount of gain or loss on sale of land should be reported in the consolidated income statement for 20X8? A. $60,000 B. $0 C. $75,000 D. $23,000