QUESTION 7 Parent Company acquires son of a subsidiary and has control Parent company will consolidate the following amount of the Subsidiary 0 20 80% 100 90% QUESTIONS During 2012. Von Co. sold inventory to its wholly owned subsidiary, Lord Co. The Inventory cost 530.000 and was sold to Lord for 544,000. From the perspective of the consolidation, when is the $14.000 gain realized? When the goods are sold to a third party by Lord When Lord pays Von for the goods. When Von sold the goods to Lord, When the goods are used by Lord. No gain can be recognized since the transaction was between related parties