Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2010, 2011, and 2012, respectively. Parker sold the land it purchased from Stark in 2010 for $92,000 in 2012.
-Compute income from Stark reported on Parker's books for 2011.
A) $185,000.
B) $157,500.
C) $166,500.
D) $162,000.
E) $180,000.

Question

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The Answer of Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2010, 2011, and 2012, respectively. Parker sold the land it purchased from Stark in 2010 for $92,000 in 2012.
-Compute income from Stark reported on Parker's books for 2011.
A) $185,000.
B) $157,500.
C) $166,500.
D) $162,000.
E) $180,000.

Stark Company, a 90% Owned Subsidiary of Parker, Inc