REFERENCE: Ref.05_09 Stiller Company,an 80% Owned Subsidiary of Leo Company,purchased Land from Land

Multiple Choice

REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of Leo Company,purchased land from Leo on March 1,2009,for $75,000.The land originally cost Leo $60,000.Stiller reported net income of $125,000 and $140,000 for 2009 and 2010,respectively.Leo uses the equity method to account for its investment.
-On a consolidation worksheet,what adjustment would be made for 2009 regarding the land transfer?

A) Debit gain for $50,000.
B) Credit gain for $50,000.
C) Debit land for $15,000.
D) Credit land for $15,000.
E) Credit gain for $15,000.