Suppose Ryan acquired land sometime in the past at a cost of $2,000,000. During the current year, it sells the land to Patrick (subsidiary) for $2,500,000. Prior to consolidation, a gain of $500,000 (= $2,500,000 - $2,000,000) appears on Ryan's books, and Patrick's books carry the land at $2,500,000. At the date of consolidation, Patrick still owns the land. On the consolidated balance sheet, what amount will the land be reported at?

Select one:

a. $500,000

b. $2,000,000

c. $2,500,000

d. The land will be eliminated on the consolidated balance sheet