In 2011 P Company Sells Land To Its 80 Owned Subsidiary S Company At A Gain Of 5

29. In 2011, P Company sells land to its 80% owned subsidiary, S Company, at a gain of $50,000. What is the effect of this sale of land on consolidated net income assuming S Company still owns the land at the end of the year?consolidated net income will be the same as if the sale had not occurred. consolidated net income will be $50,000 less than it would had the sale not occurred. consolidated net income will be $40,000 less than it would had the sale not occurred. consolidated net income will be $50,000 greater than it would had the sale not occurred.

 

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