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:

Equity Theory

A theory of motivation that focuses on an individual's perception of fairness in work situations, especially in relation to the input and output balance compared to others.

Procedural Justice

Refers to the fairness of the processes that lead to outcomes.

Achievement Motivation

A person's drive to pursue and achieve goals, often involving competition or overcoming challenges.

High Achiever

An individual who consistently exceeds standard expectations and goals through hard work and talent.