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.