The 2011 Unrealized Gain from the Intercompany Sale

question 25

Multiple Choice

The 2011 unrealized gain from the intercompany sale

• A)should be recognized in consolidation in 2011 by a working paper entry.
• B)should be eliminated from consolidated net income by a working paper entry that credits land for $14,000.
• C)should be eliminated from consolidated net income by a working paper entry that debits land for $14,000.
• D)should be eliminated from consolidated net income by a working paper entry that credits gain on sale of land for $14,000.

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Definitions:

Larger

Describes something of greater size, amount, extent, or degree than is usual or expected.

Skin Lesion

An area of the skin that has an abnormal appearance compared to the skin around it, which can be a bump, sore, rash, or other change.

Tumor

An abnormal growth of tissue resulting from uncontrolled, progressive multiplication of cells and serving no physiological function; may be benign or malignant.