Subsidiary sold the land externally for a gain


Parent sold land to its subsidiary for a gain in 2007. The subsidiary sold the land externally for a gain in 2010. Which of the following statements is false?

A. A gain will be reported on the consolidated income statement in 2010

B. No gain will be reported on the consolidated income statement in 2007

C. A gain will be reported by the subsidiary on its 2010 income statement

D. A gain will be reported by the subsidiary on its 2007 income statement

E. A gain will be reported by the parent on its 2007 income statement

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Accounting Basics: Subsidiary sold the land externally for a gain
Reference No:- TGS076086

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