Stiller Company, an 80% Owned Subsidiary of Leo Company, Purchased

question 5

Multiple Choice

Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2012, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2012 and 2013, respectively. Leo uses the equity method to account for its investment.
Compute the gain or loss on the intra-entity 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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Groups of individuals differing from the larger population in terms of race, religion, language, or other characteristics, often facing disproportionate social or economic barriers.

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