The 2011 Unrealized Gain from the Intercompany Sale

question 25

Multiple Choice

The 2011 unrealized gain from the intercompany sale

• A)should be recognized in consolidation in 2011 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.

---

Definitions:

Primary User

The primary user is the main individual or group of individuals who are the intended users or beneficiaries of a product or service.

Direct Negative-No Question

A type of question that prompts a negative response and is directly tailored to confirm a particular assumption or piece of information.

Opinion Approach

An approach whereby a salesperson shows that the buyer’s opinion is valued.

SPIN Approach

A sales technique that involves asking Situation, Problem, Implication, and Need-payoff questions to understand a customer's needs and propose solutions.