Which of the following is an example of an unrealized gain or loss on intercompany sale of equipment?

Multiple Choice

• A gain recorded only by the parent which should also be recorded by the subsidiary.

• A difference between the parent's cost and the price which it sells the equipment to the subsidiary.

• A subsidiary's gain or loss on the sale of equipment bought from the parent and now sold to an outsider.

• Any gain or loss on the sale of equipment recorded by any type of sale (either to an affiliate or to an outsider) by either the parent or the subsidiary.