Parent purchases Land on January 1, 2009 for $100,000. On January 1, 2010 parent sells land to 100% owned subsidiary for $140,000. Subsiriary holds land until December 31, 2014 and thensells it to a third parties for $160,000. a. how much gain on sale does the parent record in 2010? b. how much does the subsidiary record the land for on its books in 2010. c. how much is consolidated gain on sale of land in 2010.
Parent purchases Land on January 1, 2009 for $100,000. On January 1, 2010 parent sells land to 100% owned subsidiary for $140,000. Subsiriary holds land until December 31, 2014 and thensells it to a third parties for $160,000. a. how much gain on sale does the parent record in 2010? b. how much does the subsidiary record the land for on its books in 2010. c. how much is consolidated gain on sale of land in 2010.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Parent purchases Land on January 1, 2009 for $100,000. On January 1, 2010 parent sells land to 100% owned subsidiary for $140,000. Subsiriary holds land until December 31, 2014 and thensells it to a third parties for $160,000.
a. how much gain on sale does the parent record in 2010?
b. how much does the subsidiary record the land for on its books in 2010.
c. how much is consolidated gain on sale of land in 2010.
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