Multiple Transfers of Asset Swanson Corporation purchased land from Clayton Corporation for $240,000

Multiple Transfers of Asset

Swanson Corporation purchased land from Clayton Corporation for $240,000 on December 20, 20X3. This purchase followed a series of transactions between Swanson-controlled subsidiaries. On February 7, 20X3, Sullivan Corporation purchased the land from a nonaffiliated for $145,000. It sold the land to Kolder Company for $130,000 on October 10, 20X3, and Kolder sold the land to Clayton for $180,000 on November 27, 20X3. Swanson has control of the following companies:

Subsidiary	Level of Ownership	20X3 Net Income
Sullivan Corporation	80 percent	$120,000
Kolder Company	70 percent	60,000
Clayton Corporation	90 percent	80,000

Swanson reported income from its separate operations of $150,000 for 20X3.

Required

a. At what amount should the land be reported in the consolidated balance sheet as of December 31, 20X3?

b. What amount of gain or loss on sale of land should be reported in the consolidated income statement for 20X3?

c. What amount of income should be assigned to the controlling shareholders in the consolidated income statement for 20X3?

d. Give any elimination entry related to the land that should appear in the worksheet used to prepare consolidated financial statements for 20X3.