Compute the gain or loss on the intercompany sale of land


Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2009, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2009 and 2010, respectively. Leo uses the equity method to account for its investment. Compute the gain or loss on the intercompany sale of land.

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Accounting Basics: Compute the gain or loss on the intercompany sale of land
Reference No:- TGS089057

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