Pumpkin Corporation purchased land on January 1, 20X6, for $50,000. On July 15, 20X8, it sold the land to its subsidiary, Spice Corporation, for $70,000. Pumpkin owns 80 percent of Spice's voting shares. Based on the preceding information, what will be the worksheet consolidating entry to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for 20X8? A. Gain on Sale of Land 20,000 Land 20,000 B. Gain on Sale of Land 16,000 Land 16,000 C. Land 16,000 Gain on Sale of Land 16,000 D. Land 20,000 Gain on Sale of Land 20,000 Option A Option B Option C Option D

Pumpkin Corporation purchased land on January 1, 20X6, for $50,000. On July 15, 20X8, it sold the land to its subsidiary, Spice Corporation, for $70,000. Pumpkin owns 80 percent of Spice's voting shares. Based on the preceding information, what will be the worksheet consolidating entry to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for 20X8? A. Gain on Sale of Land 20,000 Land 20,000 B. Gain on Sale of Land 16,000 Land 16,000 C. Land 16,000 Gain on Sale of Land 16,000 D. Land 20,000 Gain on Sale of Land 20,000 Option A Option B Option C Option D

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8RE

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QUESTION 44

A.	Gain on Sale of Land	20,000
	Land		20,000
B.	Gain on Sale of Land	16,000
	Land		16,000
C.	Land	16,000
	Gain on Sale of Land		16,000
D.	Land	20,000
	Gain on Sale of Land		20,000

		Option A
		Option B
		Option C
		Option D

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