Which of the following events is an intercompany transaction? A) a capital contribution B) a parent corporation's sale of stock of a subsidiary corporation to a nonmember of the group C) dividend payment received from a subsidiary corporation to its parent corporation; the subsidiary corporation is not an includible corporation D) accrual of interest on a loan made by one group member to another group member; both group members use the accrual method of accounting 46. Which of the following events is an intercompany transaction that requires the deferral and later recognition of income? A) sale of inventory from a subsidiary corporation to its parent corporation B) accrual of rentals on a lease of real property owned by one group member that is used by another group member; both group members use the accrual method of accounting C) cash dividend payment from a subsidiary corporation to its parent corporation D) None of the above transactions require the deferral and later recognition of income. 47. Santana Corporation and Andrei Corporation file consolidated returns. In January 2017, Santana sold Andrei Land witha basis of $100,000 for its fair value of $125,000. Andrei sold the property to an unrelated party in April 2018 for $175,000. What amount of gain should be reported for these transactions in the consolidated returns for 2017 and 2018? A) 2017 $25,000 B) 2017 2018 $50,000 2018 $25,000 C) 2017 SO D) 2017 $25,000 2018 $75,000 2018 $75,000