Justings Co.owned 80% of Evana Corp.During 2018, Justings sold to Evana land with a book value of $48,000.The selling price was $70,000.For purposes of the December 31, 2018 consolidated financial statements, at what amount should the land be reported?
A) $17,600.
B) $22,000.
C) $48,000.
D) $56,000.
E) $70,000.

Question

Quizplus · Accepted Answer

The land should be reported at its original book value of $48,000 in the consolidated financial statements, as intercompany profits are eliminated.