In 20X1, a Parent Company Sold a Tract of Land $$\begin{array} { | l | l | } \hline \text { DR Loss on the sale of land } & 30,000 \\\hline \text { CR Land } & 30,000 \\\hline\end{array}$$

question 39

Multiple Choice

In 20X1, a parent company sold a tract of land to its wholly owned 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?

• A) \[\begin{array} { | l | l | }
• \hline \text { DR Loss on the sale of land } & 30,000 \\
• \hline \text { CR Land } & 30,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { DR Land } & 30,000 \\
• \hline \text { CR Loss on the sale of land } & 30,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { DR Retained earnings } & 30,000 \\
• \hline \text { CR Land } & 30,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { DR Land } & 30,000 \\
• \hline \text { CR Retained earnings } & 30,000 \\
• \hline
• \end{array}\]

Interpret the relationship between economies of scale, diseconomies of scale, and long-run cost curves.

Comprehend the relationship between output levels and average/marginal costs.

Grasp the idea of economies and diseconomies of scope.

Appreciate the significance of returns to scale on long-run costs.

---

Definitions:

SELL Sequence

SELL sequence is a sales strategy that outlines a sequence of steps Salespersons follow to effectively sell a product or service, usually involving stages like Show, Explain, Lead, and Lock.

Sales Presentation

A pitch or demonstration given by a salesperson to persuade potential buyers to purchase a product or service.

FAB Selling Technique

A presentation technique stressing features, advantages, and benefits of a product.

Benefit Selling

A sales approach that focuses on communicating the benefits and value of a product or service to the customer, rather than just its features.