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Required information Pancake Corporation purchased land on January 1, 20X0, for $60,000. On August 7, 20X2, it sold the land to its subsidiary, Syrup Corporation,
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Pancake Corporation purchased land on January 1, 20X0, for $60,000. On August 7, 20X2, it sold the land to its subsidiary, Syrup Corporation, for $35,000. Pancake owns 60 percent of Syrup's voting shares.
Based on the preceding information, what will be the worksheet consolidation entry to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for 20X2?
| A. | Land | 15,000 | |
| Loss on Sale of Land | 15,000 | ||
| B. | Land | 25,000 | |
| Loss on Sale of Land | 25,000 | ||
| C. | Loss on Sale of Land | 15,000 | |
| Land | 15,000 | ||
| D. | Loss on Sale of Land | 25,000 | |
| Land | 25,000 |
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