On November 8, 2018, Power Corp

Multiple Choice

On November 8, 2018, Power Corp.sold land to Wood Co., its wholly owned subsidiary.The land cost $61,500 and was sold to Wood for $89,000.For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized?

A) Proportionately over a designated period of years.
B) When Wood Co. sells the land to a third party.
C) No gain may be recognized.
D) As Wood uses the land.
E) When Wood Co. begins using the land productively.