P Company purchased land from its 80% owned subsidiary at a cost of $100,000 greater than it
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Question:
P Company purchased land from its 80% owned subsidiary at a cost of $100,000 greater than it subsidiary's book value. Two years later P sold the land to an outside entity for $20,000 more than it's cost. In its current year consolidated income statement P and its subsidiary should report a gain on the sale of land of
A. $50,000.
B. $130,000.
C. $120,000.
D. $150,000.
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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