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) \[\begin{array} { | l | l | }
• \hline \text { DR Land } & 30,000 \\
• \hline \text { CR Retained earnings } & 30,000 \\
• \hline
• \end{array}\]

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Definitions:

Motor Cortex

The motor cortex is a region of the brain involved in the planning, control, and execution of voluntary movements.

Frontal Lobes

Regions of the brain located at the front of each cerebral hemisphere, associated with reasoning, motor skills, higher level cognition, and expressive language.

Voluntary Movements

Movements that are consciously controlled by the brain, involving coordination and motor skills.

Parietal Lobes

Regions of the brain located behind the frontal lobes, involved in processing sensory information such as touch, temperature, and body position.