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Chapter 5 - Notes and Answers

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11 views3 pages

Chapter 5 - Notes and Answers

Uploaded by

karmaude
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Intercompany Transactions

aparentsubsidiary YY.to

iii iii
mm

a.in subsidiary Parent

Eet Toeliminate intercompany sale duringthe currentyear


asit nosalehave
1
95 8 qq.org fiacostmordedby
ofgoodssold

ii in iiiHana balance

EE8 Toeliminate
unrealized profitinventory profit
miiiakaitinvmmiigiiaimat.ua
inventorythatis notyetsold
Will the direction of sales affect

1,1 ftp.ggods
sold12.5k3.750 1.250
gg
corration to the consolidation process ?

Yes it will affect as


,
we

need to determine if it is downstream

Ea toeliminate
realicia pipit ventedinthe cts thefollowing
of year or upstream transaction

es
I Downstream
NIATOP NCI-NIS (NI

Accumulated Profits Realized Profit


no
upstream

HI good so
Down XX XX
allocation

µ Up X4 XX XX

Unrealized Profit
no

problem 5
Down (XX) (XX)
I allocation

Up (xx)(xx)(xx)

i I netincome 880
1 000
I i li i
auinamgagaawianat

downstream parent
long magadjust
MCQ SOLUTION

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