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14 September, 02:56

On october 22, 2016, leahy corp. sold land to heller co., its non-wholly owned subsidiary. the land cost $122,000 and was sold to heller for $197,000. from the perspective of the combination, when is the gain on the sale of the land realized?

a. proportionately over a designated period of years

b. when heller co. sells the land to a third party

c. no gain can be recognized

d. as heller uses the land

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  1. 14 September, 04:29
    0
    In this situation the answer is B. When Heller Co. sells the land to a third party. Capital gain is any money made (gained) off of a sale from an investment. Once Heller Co. sells the land the gain of the sale will be realized.
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