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 P'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

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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 P'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