In the Year a Subsidiary Sells Land to Its Parent

question 41

Multiple Choice

In the year a subsidiary sells land to its parent company at a gain, a workpaper entry is made debiting
1) Retained Earnings - P Company.
2) Retained Earnings - S Company.
3) Gain on Sale of Land.

• A)1
• B)2
• C)3
• D)both 1 and 2.

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Definitions:

Satirical

A form of literature or art that uses humor, irony, exaggeration, or ridicule to criticize and expose folly or vice.

Derisive

Expressing contempt or ridicule, often in a mocking way that seeks to diminish or belittle someone or something.

Nicknames

Alias or alternative names given to persons, places, or things, often short and sometimes affectionate or humorous.

Wernicke's Area

A region of the brain that is involved in the understanding of spoken language, located in the temporal lobe.