In 20X1,a Parent Company Sold a Tract of Land to Its

question 32

Multiple Choice

In 20X1,a parent company sold a tract of land to its subsidiary for $100,000,resulting in a $30,000 loss.The subsidiary's plans for the land did not materialize and it still owned the land at the end of 20X4.At the end of 20X4,what consolidating journal entry should be made with respect to the loss associated with the sale of land?

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Definitions:

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Unprofitable Investment

An investment that generates a financial loss or does not achieve the expected financial return.

Payback Period

The payback period is the length of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Initial Capital Investment

The total amount of money used to start a business or project, including costs for property, equipment, and legal fees.