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

Question

Nathanael Garrison

Business

6 November, 16:05

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

+1

Answers (1)

Know the Answer?

Gabriela Michael · Answer 1

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.