REFERENCE: Ref.05_10 Stark Company,a 90% Owned Subsidiary of Parker,Inc. ,Sold Land to Land

question 10

Multiple Choice

REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of Parker,Inc. ,sold land to Parker on May 1,2009,for $80,000.the land originally cost Stark $85,000.Stark reported net income of $200,000,$180,000,and $220,000 for 2009,2010,and 2011,respectively.Parker sold the land it purchased from Stark in 2009 for $92,000 in 2011.
-Which of the following will be included in a consolidation entry for 2009?

• A)Debit loss for $5,000.
• B)Credit loss for $5,000.
• C)Credit land for $5,000.
• D)Debit gain for $5,000.
• E)Credit gain for $5,000.

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Definitions:

Phototropin

A protein that acts as a blue-light receptor, causing phototropic responses in plants towards light sources.

Phototropic Response

the growth or movement of a plant organ toward or away from light, as a response to its direction.

Phytochrome

A blue-green, proteinaceous pigment involved in a wide variety of physiological responses to light; occurs in two interconvertible forms, Pr (red-absorbing phytochrome) and Pfr (far-red-absorbing phytochrome).

Bolting

The production of a tall flower stalk by a plant that grows vegetatively as a rosette (growth habit with a short stem and a circular cluster of leaves).