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A Company owns 100 percent of Z Company's outstanding common stock. A Company purchases land from an outside party for $20,000 (T1). A Company subsequently sells the land to Z for $30,000 (T2). Z later sells the land to another outside party for $40,000 (T3). Assume that only T1 and T2 are completed during the current period. What is the amount of gain reported in A Company's consolidated financial statements?
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Evaluate the cost of goods sold using the current, Acid test ratio and current liabilities and evaluate the owner's equity.
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