posted a question
14. Chain Co. owned all of the voting common stock of Shannon Corp. The corporations' balance sheets dated December 31, 2010, include the following balances for land: for Chain--$416,000, and for Shannon--$256,000. On the original date of acquisition, the book value of Shannon's land was equal to its fair value. On April 4, 2011, Chain sold to Shannon a parcel of land with a book value of $65,000. The selling price was $83,000. There were no other transactions which affected the companies' land accounts during 2010. What is the consolidated balance for land on the 2011 balance sheet?
A. $672,000.
B. $690,000.
C. $755,000.
D. $737,000.
E. $654,000.
Tutor answered the question
Answer is A. $672,000 ($416,000+$256,000)

Reason being intercompany gain is eliminated on the...