Apple Corporation and Banana Corporation File Consolidated Returns $$\begin{array} { | l | l | } \hline 2007 & 2008 \\\hline \$ 30,000 & \$ 50,000 \\\hline\end{array}$$

question 64

Multiple Choice

Apple Corporation and Banana Corporation file consolidated returns.In January 2007,Apple sold Banana property with a basis of $120,000 for its fair value of $150,000.Banana sold the property to an unrelated party in April 2008 for $200,000.What amount of gain should be reported for these transactions in the consolidated returns for 2011 and 2012?

• A) \[\begin{array} { | l | l | }
• \hline 2007 & 2008 \\
• \hline \$ 30,000 & \$ 50,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline 2007 & 2008 \\
• \hline \$ 0 & \$ 50,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline 2007 & 2008 \\
• \hline \$ 30,000 & \$ 80,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline 2007 & 2008 \\
• \hline \$ 0 & \$ 80,000 \\
• \hline
• \end{array}\]

---

Definitions:

Decision-Making Process

A systematic approach to making choices among alternatives based on the evaluation of their potential outcomes.

Preferred Course

The most favorable or desirable path or decision among several options.

Sales And Marketing Strategy

A comprehensive plan that identifies the objectives, tactics, and measures for promoting and selling products or services to target customers effectively.

Unstructured

Lacking a predefined data model or organization, often referring to information or processes.