Determining sale of the land realized

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Reference no: EM13147048

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

Reference no: EM13147048

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