Use the Following Information to Answer the Question(s) Below

question 32

Multiple Choice

Use the following information to answer the question(s) below.

In 2014, Parla Corporation sold land to its subsidiary, Sidd Corporation, for $38,000. It had a book value of $24,000. In the next year, Sidd sold the land for $41,000 to an unaffiliated firm.

-The 2014 unrealized gain from the intercompany sale

• A)should be recognized in consolidation in 2014 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:

Mental Model

An individual's internal representation of the external world, influencing how they interpret and interact with it.

Ritual

Represents a set of actions performed mainly for their symbolic value, prescribed by traditions or by a community.

Corporate Culture

The pervasive and enduring set of values, attitudes, and practices that characterize the unique business environment of an organization, influencing how work is conducted and decisions are made.

Physical Structure

The tangible, physical layout of an organization's facilities, including its buildings and internal work spaces.