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vlada-n [284]
3 years ago
8

On october 22, 2016, leahy corp. sold land to heller co., its non-wholly owned subsidiary. the land cost $122,000 and was sold t

o heller for $197,000. from the perspective of the combination, when is the gain on the sale of the land realized?
a. proportionately over a designated period of years
b. when heller co. sells the land to a third party
c. no gain can be recognized
d. as heller uses the land
Business
1 answer:
Sveta_85 [38]3 years ago
6 0
In this situation the answer is B. When Heller Co. sells the land to a third party. Capital gain is any money made (gained) off of a sale from an investment. Once Heller Co. sells the land the gain of the sale will be realized. 
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