Compute Parker's reported gain or loss on its internal accounting records prior to consolidation relating to the land for 2019.
A) $12,000 gain.
B) $ 5,000 loss.
C) $12,000 loss.
D) $ 7,000 gain.
E) $ 7,000 loss.

Question

Quizplus · Accepted Answer

Parker's reported gain on its internal accounting records prior to consolidation relating to the land for 2019 is $12,000. This is because Parker sold the land for $100,000, which is $12,000 more than its book value of $88,000.

Compute Parker's Reported Gain or Loss on Its Internal Accounting