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    When is the gain on the sale of the land realized?

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    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

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    According to the accounting rules, the gain on inter-company selling of land should be recognized in ...

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    The solution shows the gain on the sale of the land realized.