What is the consolidated amount of gain or loss on sale

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Question - Renner Company sold land to Bethany Enterprises, its parent, on June 1, 2020. The sale price was $218,000. The land originally cost Renner $239,000. Renner reported net income of $400,000 and $496,000 for 2020 and 2021, respectively. Bethany sold the land it purchased from Renner for $228,000 in 2022.

Q1. What is the balance in the pre-consolidation Income (loss) from Subsidiary account for 2020?

a. $379,000

b. $400,000

c. $411,000

d. $421,000

Q2. What is the consolidated amount of gain or loss on sale of land for 2022?

a. $10,000 gain

b. $10,000 loss

c. $11,000 loss

d. $21,000 loss

Reference no: EM132515301

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