Which of the Following Statements Is True Regarding an Intra-Entity

question 26

Multiple Choice

Which of the following statements is true regarding an intra-entity transfer of land?

• A) A loss is always recognized but a gain is deferred in a consolidated income statement.
• B) A loss and a gain are deferred until the land is sold to an outside party.
• C) A loss and a gain are always recognized in a consolidated income statement.
• D) A gain is always recognized but a loss is deferred in a consolidated income statement.
• E) Recognition of a gain or loss is deferred by adjusting stockholders' equity through comprehensive income.

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