Parent Sold Land to Its Subsidiary Resulting in a Gain

question 40

Multiple Choice

Parent sold land to its subsidiary resulting in a gain in 2019, the year of transfer. The subsidiary sold the land to an unrelated third party for a gain in 2022. Which of the following statements is true?

• A) A gain will be recognized in the consolidated income statement in 2019.
• B) A gain will be recognized in the consolidated income statement in 2022.
• C) No gain will be recognized in the 2022 consolidated income statement.
• D) Only the parent company will recognize a gain in 2022.
• E) The subsidiary will recognize a gain in 2019.

Discuss the role of ethnic and sexual identity in the psychological development of adolescents.

Identify the medical and psychological challenges faced by adolescent parents.

Examine the development and outcomes of identity crises during adolescence.

Understand the concept and implications of ethical dilemmas in business.

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Definitions:

Remainderman

A remainderman is the person or entity entitled to receive the remainder of an estate after the termination of the life estate or other interest ends.

CPI-Measured Inflation Hedge

An investment or asset that is expected to increase in value at a rate that matches or exceeds the rate of inflation as measured by the Consumer Price Index (CPI), thus preserving purchasing power.

TIPS

Treasury Inflation-Protected Securities, a type of U.S. Treasury bond designed to help investors protect against inflation.

Fully-Funded Pension Funds

Pension plans that have sufficient assets to meet all the pension obligations to participants, both present and anticipated.