Question: Using the fully adjusted equity method, an intercompany gain on an upstream sale of land is: -recognized by the parent and the deferral is shared

Using the fully adjusted equity method, an intercompany gain on an upstream sale of land is:

-recognized by the parent and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary.

-recognized by the subsidiary and the deferral is shared between the controlling and noncontrolling stockholders of the subsidiary.

-deferred by the subsidiary until the land is sold to an entity outside the consolidated group.

-recognized by the subsidiary and the deferral is completely allocated to the controlling stockholders of the subsidiary.

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