Parent Corporation Purchased Land from S1 Corporation for $220,000 on December

question 42

Multiple Choice

Parent Corporation purchased land from S1 Corporation for $220,000 on December 26, 20X8. This purchase followed a series of transactions between P-controlled subsidiaries. On February 15, 20X8, S3 Corporation purchased the land from a nonaffiliate for $160,000. It sold the land to S2 Company for $145,000 on October 19, 20X8, and S2 sold the land to S1 for $197,000 on November 27, 20X8. Parent has control of the following companies: Parent reported income from its separate operations of $200,000 for 20X8.
Based on the preceding information, at what amount should the land be reported in the consolidated balance sheet as of December 31, 20X8?

• A) $145,000
• B) $220,000
• C) $197,000
• D) $160,000

---

Definitions:

Pain

A distressing sensation and emotional experience linked to tissue damage or described in terms of such damage.

Positive Punishment

A behavior modification technique where an undesirable behavior is followed by an unpleasant stimulus to decrease the likelihood of the behavior's recurrence.

Teasing

The act of playfully or mockingly disturbing or provoking someone with remarks, questions, or actions.

Public Library

A community-funded institution that provides access to books, digital resources, and other educational materials to the public free of charge.