Question

U YUSUN DE VOUS attempt View previous attempt Palomino Corporation purchased land from its 60%-owned subsidiary. Salmon Inc, in 2016 at a cost $30,000 greater than Salmon's book value. In 2019, Palomino sold the land to an outside entity for $40,000 more than Palomino's carrying amount. The 2019 consolidated income statement reported again on the sale of land of Multiple Choice O $70.000 558.000 $42.000 < Prev 9 Next >

Answer 1

Any gain on intercompany transactions is not recognized under the asset is sold to outside party.

Gain on the sale of land = 30000+40000 = $70,000

Option C $70,000 is correct