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	20X8 Net Income
S3	80 percent	$ 100,000
S2	70 percent	70,000
S1	90 percent	95,000

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

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?

Multiple Choice

$60,000

$0

$75,000

$23,000