Question 111) ListenOn June 30, 2018, Parent Company sold some land to its subsidiary for $240,000.The land had cost Parent Company $120,000 when it was acquired three yearspreviously. On June 30, 2020, the subsidiary sold the land to an outside party for$275,000. Parent Company owns 75% of the outstanding shares of its subsidiary andaccounts for its investment using the cost method.What effect will the adjustment for the realization of the intercompany gain (in thepreparation of the consolidated income statement) have on the non-controllinginterest in income for 2020?It will decrease the non-controlling interest in income by $8,750.It will have no effect on the non-controlling interest in income.It will increase the non-controlling interest in income by $38,750.It will increase the non-controlling interest in income by $35,000

As parent company sold its land to subsidiry for a gian of 120,000…

Answered: On June 30 201 8 Darent Company sold…

Business

Accounting

On June 30 201 8 Darent Company sold some land to its subsidiary for $2

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 18DQ: LO.4, 7 In December 2019, Carl Corporation sold land it held as an investment. The corporation...

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