In 2014, P Corporation sold land to its subsidiary, S Corporation, for $38,000. It had a book value of $24,000. In the next year, S corp sold the land for $41,000 to an unaffiliated firm. Which of the following is correct? Select one: a. A consolidation working sheet entry is required each year that S co has the land b. A consolidation working sheet entry is required only if the subsidiary was less than 100% owned in 2014. c. No consolidation working sheet entry is required for this transaction in 2014. d. A consolidation working sheet entry was required only if the land was held for resale in 2014
In 2014, P Corporation sold land to its subsidiary, S Corporation, for $38,000. It had a book value of $24,000. In the next year, S corp sold the land for $41,000 to an unaffiliated firm. Which of the following is correct? Select one: a. A consolidation working sheet entry is required each year that S co has the land b. A consolidation working sheet entry is required only if the subsidiary was less than 100% owned in 2014. c. No consolidation working sheet entry is required for this transaction in 2014. d. A consolidation working sheet entry was required only if the land was held for resale in 2014
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 38P
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Question
In 2014, P Corporation sold land to its subsidiary, S Corporation, for $38,000. It had a book value of $24,000. In the next year, S corp sold the land for $41,000 to an unaffiliated firm.
Which of the following is correct?
Select one:
a. A consolidation working sheet entry is required each year that S co has the land
b. A consolidation working sheet entry is required only if the subsidiary was less than 100% owned in 2014.
c. No consolidation working sheet entry is required for this transaction in 2014.
d. A consolidation working sheet entry was required only if the land was held for resale in 2014
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