Pogo Corporation Acquired a 75% Interest in Sperry Corporation on January

Pogo Corporation acquired a 75% interest in Sperry Corporation on January 1,2009 at a cost equal to book value and fair value.In the same year Sperry sold land costing $25,000 to Pogo for $50,000.On July 1,2012,Pogo sold the land to an unrelated party for $85,000.What was the gain on the sale of the land on the consolidated income statement for 2012?

A) $25,000
B) $35,000
C) $45,000
D) $60,000