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Tark Company, a 90 percent owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $80,000. The land originally cost Stark $65,000. Parker sold the land it purchased from Stark in 2010 for $92,000 in 2012.
1. Evaluate what amount of gain or loss should be reported on consolidated financial statements for 2010?
2. Which of the subsequent will be included in a consolidation entry for 2011?
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