On november 8 2006 power corp. sold land to wood co. its, Ask an Expert

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On November 8, 2006, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. From the perspective of the combination, when is the gain on the sale of the land realized?

a) Proportionately over a designated period of years.

b) When Wood Co. sells the land to a third party.

c) No gain can be recognized.

d) When Wood Co. begins using the land productively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M974596

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