Concept of perspective of the combination

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During 2010, Von Co. sold inventory to its wholly-owned subsidiary, Lord Co. The inventory cost $30,000 and was sold to Lord for $44,000. From the perspective of the combination, when is the $14,000 gain realized?

A. When the goods are sold to a third party by Lord.

B. When Lord pays Von for the goods.

C. When Von sold the goods to Lord.

D. When the goods are used by Lord.

E. No gain can be recognized since the transaction was between related parties.

Reference no: EM13152897

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