A Few Years Ago,Locke Ltd

Multiple Choice

A few years ago,Locke Ltd.had purchased a machine from its wholly-owned subsidiary,Dubois Ltd. ,for $90,000.Locke has just sold the machine to an unrelated party for a $15,000 gain.At the time of the sale,there was still an unrealized gain of $50,000 from the purchase from Dubois.With this sale of the asset to the unrelated party,what is the amount of gain that should be recognized on Locke's consolidated financial statements?

A) $15,000
B) $50,000
C) $55,000
D) $65,000