Question
Top owns 80% of Bottom On January 1, 2018 Bottom sell Land (cost of $60,000) to Top for $100,000. Top holds the Land until December
Top owns 80% of Bottom On January 1, 2018 Bottom sell Land (cost of $60,000) to Top for $100,000. Top holds the Land until December 31, 2021 when it sells it to third parties for $150,000. What worksheet entry is required in 2021.
| Dr. Retained Earnings. $32,000 Cr. Gain on Sale $32,000 | ||
| Dr. Retained Earnings. $40,000 Cr. Gain on Sale. $40,000 | ||
| Dr. Gain on Sale. $50,000 Cr. Land. $50,000 | ||
| Dr. Gain on Sale $40,000 Cr. Land. $40,000 |
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Managerial Accounting For Undergraduates
Authors: James Wallace, Scott Hobson, Theodore Christensen
2nd Edition
1618533096, 9781618533098
