REFERENCE: Ref.05_09 Stiller Company,an 80% Owned Subsidiary of Leo Company,purchased Land from Land

question 89

Multiple Choice

REFERENCE: Ref.05_09
Stiller Company,an 80% owned subsidiary of Leo Company,purchased land from Leo on March 1,2009,for $75,000.The land originally cost Leo $60,000.Stiller reported net income of $125,000 and $140,000 for 2009 and 2010,respectively.Leo uses the equity method to account for its investment.
-Compute the gain or loss on the intercompany sale of land.

• A)$15,000 loss.
• B)$15,000 gain.
• C)$50,000 loss.
• D)$50,000 gain.
• E)$65,000 gain.

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Definitions:

Electronic Eligibility Features

Digital tools or systems used by healthcare providers to verify a patient's insurance coverage and benefits.

Loss-of-Income Benefits

Financial compensations provided typically through insurance or workers' compensation for individuals who cannot work and earn an income due to a disability or injury.

Insured Disability

A condition where an individual is protected under an insurance policy that provides income in the case they are unable to work due to a disability.

Precertification

The process of obtaining authorization from a health insurance company before receiving medical services to ensure coverage.