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PeopleMag Sells a Plot of Land for $100,000 to Seven

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Essay

PeopleMag sells a plot of land for $100,000 to Seven Star Company,its 100 percent owned subsidiary,on January 1,20X7.The cost of the land was $75,000,when it was purchased in 20X6.In 20X9,Seven Star sells the land to Hot Properties Inc. ,an unrelated entity,for $120,000.How is the land reported in the consolidated financial statements for 20X7,20X8 and 20X9?


Definitions:

Impressions

The initial thoughts or feelings about someone or something, formed quickly and without much evidence.

Stereotypes

Oversimplified, generalized ideas or beliefs about the characteristics, attributes, and behaviors of a particular group or individual.

Category

A class or division of objects or concepts perceived as having particular shared characteristics.

Schema

A cognitive framework or concept that helps organize and interpret information, consisting of all one's knowledge and expectations about a particular concept or object.

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