Any Intercompany Gain or Loss on a Downstream Sale of Land

Multiple Choice

Any intercompany gain or loss on a downstream sale of land should be recognized in consolidated net income:
I.in the year of the downstream sale.
II.over the period of time the subsidiary uses the land.
III.in the year the subsidiary sells the land to an unrelated party.

A) I
B) II
C) III
D) I or II