In 2017, P Company Sells Land to Its 80% Owned

question 24

Multiple Choice

In 2017, P Company sells land to its 80% owned subsidiary, S Company, at a gain of $50,000. What is the effect of this sale of land on consolidated net income assuming S Company still owns the land at the end of the year?

• A) consolidated net income will be the same as if the sale had not occurred.
• B) consolidated net income will be $50,000 less than it would had the sale not occurred.
• C) consolidated net income will be $40,000 less than it would had the sale not occurred.
• D) consolidated net income will be $50,000 greater than it would had the sale not occurred.

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Definitions:

Immediacy Responses

Immediate, direct reactions or feedback to stimuli or interactions within a particular context.

Panic Attacks

Sudden episodes of intense fear or anxiety, accompanied by physical and psychological symptoms.

Helping

Providing assistance or support to someone in need.

Interpretation Responses

The reactions or explanations provided by a therapist or individual when trying to understand or make sense of events, behaviors, or emotions.