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Lorikeet Corporation acquired an 80% interest in Nectar Corporation on January 1, 2000 at a cost equal to book value and fair value. In the same year Nectar sold land costing $50,000 to Lorikeet for $30,000. On July 1, 2005, Lorikeet sold the land to an unrelated party for $110,000. What will be the gain reported on the consolidated income statement for 2005?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M992351

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