Which worksheet consolidation entry will be made on December 31,20X3,if Allen Corporation had initially purchased the land for $60,000 and then sold it to Hilldale on August 7,20X2,for $35,000?

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The entry to eliminate the intercompany sale between Allen Corporation and Hilldale would be made on the consolidation worksheet at the end of the fiscal year, i.e. December 31, 20X3. As Allen Corporation initially purchased the land for $60,000 and then sold it to Hilldale for $35,000 on August 7, 20X2, a gain of $25,000 was recognized at that time. This gain needs to be eliminated in the consolidation worksheet to avoid overstating the consolidated income. Hence, the consolidation entry would be to debit the land account for $60,000 and credit the gain on sale of land account for $25,000 and the land account for $35,000. The option C represents this entry.

Which Worksheet Consolidation Entry Will Be Made on December 31,20X3,if