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natima [27]
4 years ago
7

Parent sold land to its subsidiary resulting in a gain in 2016, the year of transfer. The subsidiary sold the land to an unrelat

ed third party for a gain in 2019. Which of the following statements is true?a) A gain will be recognized in the consolidated income statement in 2019.
b) The subsidiary will recognize a gain in 2016.

c) No gain will be recognized in the 2019 consolidated income statement.

d) Only the parent company will recognize a gain in 2019.

e) A gain will be recognized in the consolidated income statement in 2016.
Business
1 answer:
hodyreva [135]4 years ago
8 0

Answer:

a) A gain will be recognized in the consolidated income statement in 2019.

Explanation:

As the land is sold to a subsidiary it will be considered intra-entity thus, eliminated in the consolidated income statement of 2016

the gain of both entities (from parent to subsidiary and to subsidiary to third party) will be recognized at 2019 when an external entity purchases the land

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Long term

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3 years ago
Yvette Bradbury is an account representative at Commerce Savings Bank, earning $45,600 annually, paid semimonthly. She contribut
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Answer:

taxable income per pay period = $1,637.50

Explanation:

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7 0
4 years ago
What can the government of a relatively poor country do to promote economic prosperity? check all that apply. encourage transmis
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4 0
3 years ago
Read 2 more answers
Timothy, LLC, originally budgeted $10,000 of costs to produce 100 toy cars. $5,000 of these costs consisted of direct labor, $1,
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Answer:

$1,600

Explanation:

Budgeted raw material cost per toy car:

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Therefore, the flexible budget amount of raw materials is $1,600.

3 0
3 years ago
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