Parent Corporation Purchased Land from S1 Corporation for $220,000 on December

question 34

Multiple Choice

Parent Corporation purchased land from S1 Corporation for $220,000 on December 26,20X8.This purchase followed a series of transactions between P-controlled subsidiaries.On February 15,20X8,S3 Corporation purchased the land from a nonaffiliate for $160,000.It sold the land to S2 Company for $145,000 on October 19,20X8,and S2 sold the land to S1 for $197,000 on November 27,20X8.Parent has control of the following companies:
Parent reported income from its separate operations of $200,000 for 20X8.
-Based on the preceding information,at what amount should the land be reported in the consolidated balance sheet as of December 31,20X8?

• A)$145,000
• B)$220,000
• C)$197,000
• D)$160,000

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