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 true?
a. A gain will be reported on the consolidated income statement in 2007.
b. A gain will be reported on the consolidated income statement in 2010.
c. No gain will be reported on the 2010 consolidated income statement.
d. Only the parent company will report a gain in 2010.
e. The subsidiary will report a gain in 2007.