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Question - Big Co. owns 60% of the stock of Little Co. On 1/1/22, Little Co sells land to Big Co for $50,000. The land had cost Little Co. $30,000 several years earlier.
On 3/1/25, Big Co sells the land to a thirds party for $80,000
Little Co reports earnings of $50,000 each year.
Required - What is the income to NC interest in 2022?
Determine at what amount the land should be recorded at January 1, 2020, and the interest expense to be reported in 2020 related to this transaction
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