Stark Company, a 90% Owned Subsidiary of Parker, Inc

question 21

Multiple Choice

Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2010, 2011, and 2012, respectively. Parker sold the land it purchased from Stark in 2010 for $92,000 in 2012.
-Which of the following will be included in a consolidation entry for 2010?

• A) Debit loss for $5,000.
• B) Credit loss for $5,000.
• C) Credit land for $5,000.
• D) Debit gain for $5,000.
• E) Credit gain for $5,000.

---

Definitions:

Multi-Directional Development

The concept that human development occurs in different directions and not in a linear fashion, showing gains and losses across the lifespan.

Continuity

The principle or quality of maintaining a consistent state or operation over time, often considered in contexts such as development, history, or processes.

Tortoise

refers to a terrestrial turtle, typically with a dome-shaped shell, known for its slow movement and long lifespan.

Developmental Perspective

An approach in psychology and other disciplines that focuses on how individuals grow and change throughout their lifespan, including physical, cognitive, and social development.