The sale of inventory items by a parent company to an affiliated company

Ibrahimhamm

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2022-07-06

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enters the consolidated revenue computation only if the transfer was the result of arm\\\'s length bargaining.
affects consolidated net income under a periodic inventory system but not under a perpetual inventory system.
does not result in consolidated income until the merchandise is sold to outside entities.
does not require a working paper adjustment if the merchandise was transferred at cost.

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Ibrahimhamm

2022-07-06

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C. does not result in consolidated income until the merchandise is sold to outside entities.

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