Multiple Choice
Parent sold land to its subsidiary for a gain in 2008. The subsidiary sold the land externally for a gain in 2011. Which of the following statements is true?
A) A gain will be reported in the consolidated income statement in 2008.
B) A gain will be reported in the consolidated income statement in 2011.
C) No gain will be reported in the 2011 consolidated income statement.
D) Only the parent company will report a gain in 2011.
E) The subsidiary will report a gain in 2008.
Correct Answer:
Verified
Correct Answer:
Verified
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