Question: On September 3 0 , 2 0 2 2 , Fire Company sold property to Water Inc, its wholly owned subsidiary. The property cost $

On September 30,2022, Fire Company sold property to Water Inc, its wholly owned subsidiary. The property cost $50,000 and was sold to the sub for $55,000. When must the gain or loss on the sale of the property be recognized for consolidated financial statement reporting purposes?
The gain can never be recognized in consolidated statements.
The gain will be recognized in consolidated statements if/when the property is sold to an unrelated third party.
The loss must be recognized immediately in consolidated statements.
The loss can never be recognized in consolidated statements.
The loss will be recognized in consolidated statements if/when the property is sold to an unrelated third party.

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