38. On November 8, 2003, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. From the perspective of the combination, when is the gain on the sale of the land realized?
A) Proportionately over a designated period of years
B) When Wood Co. sells the land to a third party
C) No gain can be recognized.
D) As Wood uses the land
E) When Wood Co. begins using the land productively
According to the accounting rules, the gain on inter-company selling of land should be recognized in ...
The solution shows the gain on the sale of the land realized.