On January 1, 2021, Sub sold a parcel of land to Parent for future development. Parent paid
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Question:
On January 1, 2021, Sub sold a parcel of land to Parent for future development. Parent paid Sub $300 for this land. The land was carried on sub’s balance sheet at $175. Sub has owned the land for 5 years.
- Prepare Parent’s journal entry to record the purchase of land from sub in 2021.
- Prepare Sub’s journal entry to record the sale of land to Parent in 2021.
- Compute the amortization of the gain on the sale of Land on January 1, 2021.
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
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