Asked by
Saudia Gafoor
on Dec 10, 2024
Verified
Which of the following statements is true regarding an intra-entity transfer of land?
A) A loss is always recognized but a gain is deferred in a consolidated income statement.
B) A loss and a gain are deferred until the land is sold to an outside party.
C) A loss and a gain are always recognized in a consolidated income statement.
D) A gain is always recognized but a loss is deferred in a consolidated income statement.
E) Recognition of a gain or loss is deferred by adjusting stockholders' equity through comprehensive income.
Intra-entity Transfer
Transactions involving assets, services, or funds between units or divisions within the same legal entity.
Consolidated Income Statement
A financial statement that presents the overall income of a corporation and its subsidiaries as a single entity.
Deferred
In finance, this term refers to transactions or events that are postponed to a future date.
- Determine the consequences of intra-entity transfers of assets like equipment and land on consolidated financial accounts.
Verified Answer
GP
Learning Objectives
- Determine the consequences of intra-entity transfers of assets like equipment and land on consolidated financial accounts.