On November 8, 2023, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $62,000 and was sold to Wood for $74,000. For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized? O Proportionately over a designated period of years. O No gain may be recognized. O When Wood Co. sells the land to a third party. O As Wood uses the land.
On November 8, 2023, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $62,000 and was sold to Wood for $74,000. For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized? O Proportionately over a designated period of years. O No gain may be recognized. O When Wood Co. sells the land to a third party. O As Wood uses the land.
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 16MCQ
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Transcribed Image Text:On November 8, 2023, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $62,000 and was sold to Wood for $74,000. For consolidated financial statement
reporting purposes, when must the gain on the sale of the land be recognized?
O Proportionately over a designated period of years.
O No gain may be recognized.
O When Wood Co. sells the land to a third party.
O As Wood uses the land.
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