Multiple Choice
Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2010, 2011, and 2012, respectively. Parker sold the land purchased from Stark in 2010 for $92,000 in 2012. Compute income from Stark reported on Parker's books for 2010.
A) $205,000.
B) $200,000.
C) $180,000.
D) $175,500.
E) $184,500.
Correct Answer:
Verified
Correct Answer:
Verified
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