Which worksheet consolidating entry will be made on December 31,20X9,if XYZ Corporation had initially purchased the land for $50,000 and then sold it to ABC on July 15,20X8,for $70,000?

Question

Quizplus · Accepted Answer

Since the land was sold by XYZ Corporation in July 2018, it will not be included in the December 31, 2019, consolidation entry. Therefore, option A and D can be eliminated. 
Option C includes the land as if it were still owned by XYZ Corporation, which is incorrect. 
Option B is the correct choice as it eliminates the land from the consolidation entry as it was sold in the prior year.

Which Worksheet Consolidating Entry Will Be Made on December 31,20X9,if