On 1/1/2020, Paws transferre land to Lion with an original c of $50,000 at a transfer price of $60,000. On 1/1/2022, Lion s the land to a third party for $90,000. Record the TL entry for 12/21/2020 the Tat
On 1/1/2020, Paws transferre land to Lion with an original c of $50,000 at a transfer price of $60,000. On 1/1/2022, Lion s the land to a third party for $90,000. Record the TL entry for 12/21/2020 the Tat
Chapter22: S Corporations
Section: Chapter Questions
Problem 15CE
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Question
H3.
Transcribed Image Text:Lion Ltd. owns 80% of Paws Co.
On 1/1/2020, Paws transferred
land to Lion with an original cost
of
$50,000 at a transfer price of
$60,000. On 1/1/2022, Lion sold
the land to a third party for
$90,000.
Record the TL entry for
12/31/2020, the * TL at
12/31/2021 and the * TL at
12/31/2022.
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