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Business, 22.03.2021 06:00 rexard

The parent company owns 70% of the outstanding shares of the subsidiary. During 2001 the subsidiary sold land to the parent company for a profit of $ 25,000. The parent company held the land for all of 2001. The profit on the sale of the parent company should be: The one recorded in the books of the subsidiary as a gain of $ 25,000 and then eliminated during the consolidation process. The deferred by the subsidiary until the parent company sells the land to an external party. The one recorded in the subsidiary's books as a gain of $ 17,500 and eliminated during the consolidation process. The one recorded in the parent company's book as a profit of $ 17,500 and then eliminated during the consolidation process.

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The parent company owns 70% of the outstanding shares of the subsidiary. During 2001 the subsidiary...
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