Question

When intra-entity transferred land is subsequently sold to an outside entity, any remaining deferred gain is recognized in the period of the sale.

a. True
b. False

Answer 1

Answer:

a. True

Explanation:

In the case when the land is transferred while intra entity and sold to the outside entity so any left deferred gain would be recorded in the sale period

and the same is to reported on the consolidated financial statements

Therefore the given statement is true

Hence, the correct option is a.

Thus, the same is to be considered