external reporting

Navas 28 April 2020 at 14:00 PM

In the process of preparing consolidated financial statements, which one of the following items does not need to be eliminated?

A) Profit in beginning inventory acquired from a parent.

B) Profit on sale of a fixed asset to a subsidiary.

C) Dividends receivable from a subsidiary.

D) Profit on inventory sold to a nonaffiliate.

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FACULTY 19 May 2020 at 03:10 PM

Profit on inventory sold to a nonaffiliate (option D)

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