Perspective of the combination


During 2009, Von Co. sold inventory to its wholly-owned subsidiary, Lord Co. The inventory cost $30,000 and was sold to Lord for $44,000. From the perspective of the combination, when is the $14,000 gain realized?

A. When the goods are sold to a third party by Lord

B. When Lord pays Von for the goods

C. When Von sold the goods to Lord

D. When the goods are used by Lord

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Accounting Basics: Perspective of the combination
Reference No:- TGS076092

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