In an Acquisition of Land by a Parent from a Subsidiary

question 59

Multiple Choice

In an acquisition of land by a parent from a subsidiary, the realization of profit acquired on the land acquisition is recorded in the consolidated financial statements?

• A)In the first year that the group's consolidated financial statements are prepared.
• B)When the asset is subsequently sold to a party outside of the group.
• C)As it is amortized over the period of the life of the other assets.
• D)No profit will be realized because land is not amortized.

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Definitions:

Industrial Capitalist

An individual or entity that invests in industries for profit through the ownership of physical goods and capital goods used in production.

19th Century

The period from January 1, 1801, to December 31, 1900, characterized by industrialization, colonial expansion, significant technological advancements, and various social changes.

19th Century

A period from January 1, 1801, to December 31, 1900, that was marked by significant industrial, cultural, and political change worldwide.

Cash Crops

Crops grown for direct sale in the market, as opposed to being grown for the farmer's use or for livestock feed.