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Swanson Corporation purchased land from Clayton Corporation for $ 240,000 on December 20, 20X3. This purchase followed a series of transactions between Swanson-controlled subsidiaries. On

Swanson Corporation purchased land from Clayton Corporation for $ 240,000 on December 20, 20X3. This purchase followed a series of transactions between Swanson-controlled subsidiaries. On February 7, 20X3, Sullivan Corporation purchased the land from a nonaffiliate for $ 145,000. It sold the land to Kolder Company for $ 130,000 on October 10, 20X3, and Kolder sold the land to Clayton for $ 180,000 on November 27, 20X3. Swanson has control of the following companies:

Subsidiary/ Level of Ownership/ 20X3 Net Income

Sullivan Corporation 80 percent $ 120,000

Kolder Company 70 percent 60,000

Clayton Corporation 90 percent 80,000

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