Ask Question
17 September, 14:54

Apple Corporation and Banana Corporation file consolidated returns. In January 2007, Apple sold Banana property with a basis of $120,000 for its fair value of $150,000. Banana sold the property to an unrelated party in April 2008 for $200,000. What amount of gain should be reported for these transactions in the consolidated returns for 2011 and 2012?

+1
Answers (1)
  1. 17 September, 15:10
    0
    The consolidated return for 2007 should report $0 in gains, since transactions between the parent company and a subsidiary don't generate gain.

    The consolidated return for 2008 should report $80,000 in gains. since Banana Corporation sold an asset with a basis of $120,000 for $200,000.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Apple Corporation and Banana Corporation file consolidated returns. In January 2007, Apple sold Banana property with a basis of $120,000 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers