Question
Son Corporation is an 80% owned subsidiary of Pin Corporation. In 20X1, Son sold land that cost $15,000 to Pin for $25,000. Pin held the
Son Corporation is an 80% owned subsidiary of Pin Corporation. In 20X1, Son sold land that cost $15,000 to Pin for $25,000. Pin held the land for eight years before reselling it in 20X9 to Roy Company, an unrelated entity, for $55,000. The 20X9 consolidated income statement for Pin and its subsidiary, Son, will show a gain on the sale of land of:
Select one:
a.
$40,000
b.
$32,000
c.
$30,000
d.
$24,000
Clear my choice
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Use the following information to answer questions 13-16.
On January 1, 20X2, Stuffy sold a delivery truck with a book value of $35,000 to Puffy Corporation for $50,000. The truck had a remaining useful life of three years and straight-line depreciation is used by both companies.
Puffy holds 60% of Stuffy. Stuffy reported net income of $55,000 in 20X2 and Puffy's separate net income (excludes Income from Stuffy) for 20X2 was $98,000.
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