Question: On November 8, 2003, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. From the perspective of the combination, when is the gain on the sale of the land realized?
A) Proportionately over a designated period of years
B) When Wood Co. sells the land to a third party
C) No gain can be recognized.
D) As Wood uses the land
E) When Wood Co. begins using the land productively