P Company purchased land from its 80% owned subsidiary at a cost of $30,000 greater than it subsidiary's book value.Two years later P sold the land to an outside entity for $15,000 more than it's cost.In its current year consolidated income statement P and its subsidiary should report a gain on the sale of land of:
A)$15,000.
B)$36,000.
C)$39,000.
D)$45,000.

Question

Quizplus · Accepted Answer

The Answer of P Company purchased land from its 80% owned subsidiary at a cost of $30,000 greater than it subsidiary's book value.Two years later P sold the land to an outside entity for $15,000 more than it's cost.In its current year consolidated income statement P and its subsidiary should report a gain on the sale of land of:
A)$15,000.
B)$36,000.
C)$39,000.
D)$45,000.

P Company Purchased Land from Its 80% Owned Subsidiary at a Cost