PeopleMag Sells a Plot of Land for $100,000 to Seven

question 29

Essay

PeopleMag sells a plot of land for $100,000 to Seven Star Company,its 100 percent owned subsidiary,on January 1,2008.The cost of the land was $75,000,when it was purchased in 2007.In 2010,Seven Star sells the land to Hot Properties Inc. ,an unrelated entity,for $120,000.How is the land reported in the consolidated financial statements for 2008,2009 and 2010?

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Definitions:

Aquatic Food Chains

The hierarchical sequence of organisms each dependent on the next as a source of food in an aquatic environment.

Diatoms

Diatoms are a major group of algae, characterized by their unique cell walls composed of biogenic silica.

Paramecium

A single-celled freshwater organism belonging to the kingdom Protista, characterized by its oval shape and the presence of cilia for movement and feeding.

Ciliates

A group of protozoans characterized by the presence of hair-like structures called cilia, which they use for movement and feeding.