Use the following information to answer the question(s) below.
In 2014, Parla Corporation sold land to its subsidiary, Sidd Corporation, for $38,000. It had a book value of $24,000. In the next year, Sidd sold the land for $41,000 to an unaffiliated firm.
-Which of the following is correct?
A) No consolidation working paper entry is required for this transaction in 2014.
B) A consolidation working paper entry is required only if the subsidiary was less than 100% owned in 2014.
C) A consolidation working paper entry is required each year that Sidd has the land.
D) A consolidation working paper entry was required only if the land was held for resale in 2014.
Correct Answer:
Verified
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