Stroud Corporation is an 80%-owned subsidiary of Pennie, Inc., acquired by Pennie several years ago.On January 1, 2017, Pennie sold land with a book value of $60,000 to Stroud for $90,000.Stroud resold the land to an unrelated party for $100,000 on September 26, 2018.The gain from sale of land that will appear in the consolidated income statements for 2017 and 2018, respectively, is ____.
A)$0 and $10,000
B)$0 and $40,000
C)$30,000 and $10,000
D)$30,000 and $40,000

Question

Stroud Corporation is an 80%-owned subsidiary of Pennie, Inc., acquired by Pennie several years ago.On January 1, 2017, Pennie sold land with a book value of $60,000 to Stroud for $90,000.Stroud resold the land to an unrelated party for $100,000 on September 26, 2018.The gain from sale of land that will appear in the consolidated income statements for 2017 and 2018, respectively, is ____.
A)​$0 and $10,000
B)​$0 and $40,000
C)​$30,000 and $10,000
D)​$30,000 and $40,000

Quizplus · Accepted Answer

The Answer of Stroud Corporation is an 80%-owned subsidiary of Pennie, Inc., acquired by Pennie several years ago.On January 1, 2017, Pennie sold land with a book value of $60,000 to Stroud for $90,000.Stroud resold the land to an unrelated party for $100,000 on September 26, 2018.The gain from sale of land that will appear in the consolidated income statements for 2017 and 2018, respectively, is ____.
A)​$0 and $10,000
B)​$0 and $40,000
C)​$30,000 and $10,000
D)​$30,000 and $40,000

Stroud Corporation Is an 80%-Owned Subsidiary of Pennie, Inc