Compute the gain or loss on the intra-entity sale of land, Accounting Basics

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Compute the gain or loss on the intra-entity sale of land

Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000 and $220,000 for 2010, 2011, and 2012, respectively. Parker sold the land it purchased from stark in 2010 for $92,000 in 2012.

Compute the gain or loss on the intra-entity sale of land.

A. $80,000 gain

B. $80,000 loss

C. $85,000 loss

D. $5,000 loss

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Accounting Basics: Compute the gain or loss on the intra-entity sale of land

Reference No:- TGS069800

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Accounting Basics: Compute the gain or loss on the intra-entity sale of land

Reference No:- TGS069800

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Compute consolidated cost of goods sold

Q : Compute collin share of smeder net income

Q : What adjustment would be made regarding the land transfer

Q : Ricardian equivalence

Q : Compute the gain or loss on the intra-entity sale of land

Q : Parent company currency for all transactions

Q : Inventory under the temporal method

Q : Depreciation expense recorded by a subsidiary

Q : Current rate method of translating foreign currency

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Compute the gain or loss on the intra-entity sale of land

Reference No:- TGS069800

Recent Questions Asked Accounting Basics

Q : Compute consolidated cost of goods sold

Q : Compute collin share of smeder net income

Q : What adjustment would be made regarding the land transfer

Q : Ricardian equivalence

Q : Compute the gain or loss on the intra-entity sale of land

Q : Parent company currency for all transactions

Q : Inventory under the temporal method

Q : Depreciation expense recorded by a subsidiary

Q : Current rate method of translating foreign currency

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