63.0k views
16 votes
1. A parent company sells land to its wholly-owned subsidiary in 2015, reporting a gain of $35,000. In 2020, the subsidiary sells the land to an outside developer and reports a gain of $60,000. In the 2020 consolidation working paper, the elimination of this transaction will result in: A. A $35,000 decrease in beginning retained earnings B. A $60,000 increase in investment in subsidiary C. A $95,000 decrease in land D. A $35,000 increase in gain on sale of land

User Shondel
by
8.4k points

1 Answer

8 votes

Answer:

Step-by-step explanation:

A $60,000 increase in investment in subsidiary

User Seunghyun
by
8.3k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories