Parent Corp. and Subsidiary Corp. file consolidated returns on a calendaryear basis. In January 2019,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Parent Corp. and Subsidiary Corp. file consolidated returns on a calendaryear basis. In January 2019, Subsidiary sold land, which it had used in its operations, to Parent for $75,000. Immediately before this sale, Subsidiary's basis for the land was $45,000. Parent held the land primarily for sale to customers in the ordinary course of business. In July 2020, Parent sold the land to Dubin, an unrelated individual, for $90,000. In determining the consolidated taxable income for 2020, how much should Subsidiary take into account as a result of the 2019 sale of land from Subsidiary to Parent? Group of answer choices
$22,500
$30,000
$15,000
$45,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
