QUESTION 12 On January 1, Year 1, SUBSIDIARY CO, sells Land to its PARENT CO. for $100,000 with a basis of $80,000. In Year 3. PARENT CO, sells the land to an unrelated third party for $130.000. When does SUBSIDIDARY CO. recognize again on sale of the land? Yeart Year 2 Year Never QUESTION 13 King Corp. owns 85% of James Co, King uses the equity method to account for this investment. During 2015, King sells inventory to james for $500,000. The gross mun on the inventory in the sale was 16.00%. At 12/31/15,25% of the goods were still in James'inventory What is the consolidation Entry G2 dr. Inventory $20.000, C. COGS 520,000 dr.COGS 520,000, C. Inventory $20,000 dr. Inventory $23,8125, c. COGS 523,8125 dr.COGS $23,812.5, cr. Inventory $23.812.5 None of the included answers