REFERENCE: Ref.05_09 Stiller Company,an 80% Owned Subsidiary of Leo Company,purchased Land from Land
REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of Leo Company,purchased land from Leo on March 1,2009,for $75,000.The land originally cost Leo $60,000.Stiller reported net income of $125,000 and $140,000 for 2009 and 2010,respectively.Leo uses the equity method to account for its investment.
-Compute the gain or loss on the intercompany sale of land.
A) $15,000 loss.
B) $15,000 gain.
C) $50,000 loss.
D) $50,000 gain.
E) $65,000 gain.
Correct Answer:
Verified
Q62: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q63: REFERENCE: Ref.05_11
Pepe,Incorporated acquired 60% of Devin Company
Q64: REFERENCE: Ref.05_11
Pepe,Incorporated acquired 60% of Devin Company
Q65: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q66: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q68: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q69: REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of
Q70: REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of
Q71: REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of
Q72: REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of
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