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Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2020, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2020 and 2021, respectively. Leo uses the equity method to account for its investment. Compute the gain or loss on the intra-entity transfer of land that should be reported on the books of Leo prior to consolidation. Multiple Choice $50,000 gain. $15,000 gain. $65,000 gain. $15,000 loss. $50,000 loss.
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Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2020, f...
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