In 2014, Purple Company sold land (which cost them $40,000 when purchased on 2008) to its...

In 2014, Purple Company sold land (which cost them $40,000 when purchased on 2008) to its 80%- owned sub Silver Company for $37,000. In 2015, Silver sold the land to a nonaffiliated company for $39,000. The 2017 worksheet elimination related to the land transactions should include: a. a debit to Gain on Sale for $3,000. b. a debit to Retained Earnings – P for $2,400. c. a debit to Loss on Sale for $1,000. d. a debit to Retained Earnings – P for $3,000

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Expert Solution

A. a debit to Gain on Sale for $3,000

ekkarill92 answered 10 months ago

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