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Infinity Corp. purchased land from a nonaffiliate on January 1,20X1 for $100,000. It transferred the...

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Accounting

Infinity Corp. purchased land from a nonaffiliate on January 1,20X1 for $100,000. It transferred the land to its subsidiary, Trust Corp., on July 1,20X1, and received $150,000 as proceeds from this transaction. Trust sold the land to a high-net-worth-individual for $200,000 on January 1,20X3. Which of the following is true of the realized gain of the consolidated group as of December 31,20X3?
Multiple choice question.
The group would realize a gain of $100,000 on the sale of the asset in the year 20X3.
The group would realize a gain of $100,000 on the sale of the asset in the year 20X1.
The group would realize a gain of $50,000 on the sale of the asset in the year 20X1.
The group would realize a gain of $50,000 on the sale of the asset in the year 20X3.

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