Recognition of the gain, Justings Co. owned 80% of Evana

Recognition of the gain

Reference no: EM13130174

Justings Co. owned 80% of Evana Corp. During 2006, Justings sold to Evana land with a book value of $48,000. The selling price was $70,000. In its accounting records, Justings should:

a) recognize a gain of $17,600.

b) defer recognition of the gain until Evanna sells the land to a third party.

c) recognize a gain of $8,000.

d) recognize a gain of $22,000.

Reference no: EM13130174

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