q.23

In 2014, P Corporation sold land to its subsidiary, S Corporation, for $38,000. It had a book value of $24,000. In the next year, S corp sold the land for $41,000 to an unaffiliated firm.

Which of the following is correct?

Select one:

a. A consolidation working sheet entry is required only if the subsidiary was less than 100% owned in 2014.

b. No consolidation working sheet entry is required for this transaction in 2014.

c. A consolidation working sheet entry was required only if the land was held for resale in 2014

d. A consolidation working sheet entry is required each year that S co has the land