Which of the Following Statements Is True Regarding an Intra-Entity

question 94

Multiple Choice

Which of the following statements is true regarding an intra-entity sale of land?

• A) A loss is always recognized but a gain is eliminated in a consolidated income statement.
• B) A loss and a gain are always eliminated in a consolidated income statement.
• C) A loss and a gain are always recognized in a consolidated income statement.
• D) A gain is always recognized but a loss is eliminated in a consolidated income statement.
• E) A gain or loss is eliminated by adjusting stockholders' equity through comprehensive income.

---

Definitions:

Environmental Regulations

Laws and policies aimed at protecting the environment by controlling pollution levels, waste management, and conservation efforts, impacting business operations and compliance costs.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost.

Absorption Costs

Absorption Costs involve all the costs associated with manufacturing a product, including direct labor, materials, and overhead, allocated to the product.

Mark-Up Percentage

Mark-up percentage is the ratio of profit added to the cost price to determine the selling price.