On November 8, 2006, 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) When Wood Co. begins using the land productively.