A parent company sells land to its wholly-owned subsidiary in 2015, reporting a gain of $35,000. In 2020, the subsidiary sells the land to an outside developer and reports a gain of $60,000. In the 2020 consolidation working paper, the elimination of this transaction will result in:
A) A $95,000 decrease in land
B) A $35,000 decrease in beginning retained earnings
C) A $35,000 increase in gain on sale of land
D) A $60,000 increase in investment in subsidiary
Correct Answer:
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