Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2020, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2020 and 2021, respectively. Leo uses the equity method to account for its investment.

Compute the gain or loss on the intra-entity transfer of land that should be reported on the books of Leo prior to consolidation.

		a. $15,000 gain.
		b. $65,000 gain.
		c. $15,000 loss.
		d. $50,000 gain.
		e. $50,000 loss.