On November 8,2009,Power Corp

Multiple Choice

On November 8,2009,Power Corp.sold land to Wood Co. ,its wholly owned subsidiary.The land cost $61,500 and was sold to Wood for $89,000.From the perspective of the combination,when is the gain on the sale of the land realized?

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