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P Company owns 90% of the outstanding common stock of S Company. On January 1, 2015,...

P Company owns 90% of the outstanding common stock of S Company. On January 1, 2015, S Company sold land to P Company for $566,500. S Company originally purchased the land for $414,900.

On January 1, 2016, P Company sold the land purchased from S Company to a company outside the affiliated group for $666,100.

Calculate the amount of gain on the sale of the land that is recognized on the books of P Company in 2016.
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Answer #1
Sale of land by P to S Company $666,100
Cost of purchase of land by P company ($566,500)
Gain on the sale recognized on the books of P Company $99,600
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