Question: 1 6 . 6 7 ptsOn October 6 , 2 0 2 4 , Parent Corp. sold land to Subsidiary Co . , its wholly

16.67

ptsOn October

6, 2024,

Parent Corp. sold land to Subsidiary Co

.,

its wholly owned subsidiary. The land cost $

72, 400

and was sold to Subsidiary for $

96, 000 .

For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized? Proportionately over a designated period of years. When Subsidiary Co

.

sells the land to a third party. No gain may be recognized. When Parent sells the land to Subsidiary Co

.

When Subsidiary Co

.

begins using the land productively.

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