An entry is necessary to eliminate the full amount of the gain on the sale of land and to reduce the land to its cost basis to the consolidated entity whether the intercompany sale is upstream or downstream.

Question

Quizplus · Accepted Answer

This entry is necessary to eliminate the gain and reduce the land to its cost basis, regardless of whether the intercompany sale is upstream (from a subsidiary to a parent company) or downstream (from a parent company to a subsidiary).

An Entry Is Necessary to Eliminate the Full Amount of the Gain