Question
Parent sold land to its subsidiary resulting in a gain in 2016, the year of transfer. The subsidiary sold the land to an unrelated third
Parent sold land to its subsidiary resulting in a gain in 2016, the year of transfer. The subsidiary sold the land to an unrelated third party for a gain in 2019. Which of the following statements is true?
a) A gain will be recognized in the consolidated income statement in 2019.
b) The subsidiary will recognize a gain in 2016.
c) No gain will be recognized in the 2019 consolidated income statement.
d) Only the parent company will recognize a gain in 2019.
e) A gain will be recognized in the consolidated income statement in 2016.
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After The Quality Audit Closing The Loop On The Audit Process
Authors: J. P. Russell, Terry Regel
2nd Edition
0873894863, 978-0873894869
