On Janury 1, 2015, Parent company sold to Subsidiary company for $60,000, a parcel of land that had cost the Parent $57,000. On March 2, 2019, Subsidiary company sold the land to an outside company for $62,000.
6. Working paper entries for the year ended December 31, 2017 would include
a. a debit of $3,000 to Land
b. a credit of $7,000 to Land
c. a debit of $3,000 to Investment in Subsidiary
d. a debit of $3,000 to Retained Earnings
7. Working paper entries for the year ended December 31, 2019 would include
a. A credit of $3,000 to Gain on Sale of Land
b. A credit of $5,000 to Retained Earnings
c. A debit of $3,000 to Intercompany Gain on Sale of Land
d. A credit of $5,000 to Gain on Sale of Land
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