In 2010, Yorkshire Inc

Multiple Choice

In 2010, Yorkshire Inc., which owns 100% of Blake Company, sold land to Blake Company at $50,000 greater than its cost. The land is still owned by Blake Company. The tax rate is 30%. What is the required consolidated financial statement adjustment in 2013?

A) Decrease Beginning Retained Earnings: $35,000, decrease Land: $35,000.
B) Decrease Beginning Retained Earnings: $35,000, decrease Land: $50,000, and increase Deferred Tax Asset: $15,000.
C) Decrease Beginning Retained Earnings: $50,000, decrease Land: $35,000, and decrease Deferred Tax Asset: $15,000.
D) Decrease Beginning Retained Earnings: $50,000, decrease Land: $50,000.