Question: What is meant by realization of pro ts
What is meant by “realization of proﬁts”?
Answer to relevant QuestionsWhen are proﬁts realized on transfers of depreciable assets within the group? Addison owns all of the share capital of Erin. The following intragroup transactions, all parts of which are independent unless speciﬁed, took place. 1. In January 2013, Addison sold inventory to Erin for $15,000. This ...At the beginning of the current period, Perfect Products Inc. (PPI) sold a used depreciable asset to its wholly owned subsidiary, Simply Scrumptious Ltd. (SSL), for $80,000. PPI had originally paid $200,000 for this asset, ...What are two events that could occur between the acquisition date and the beginning of the current period that could affect the calculation of the NCI share of retained earnings? When is proﬁt realized on an intragroup transaction involving a depreciable asset?
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